Brookfield Business Partners converting to simplified Canadian corporation

Brookfield Business Partners (BBU) has approved plans to simplify its corporate structure by converting Brookfield Business Partners, or BBU, and Brookfield Business Corporation, or BBUC, into one publicly traded Canadian corporation, or BBU Inc. BBUC shares currently trade at an approximate 25% premium to BBU limited partnership units. Anticipated benefits of the corporate reorganization include: broader access to global investors who prefer corporate structures; improved consolidated trading liquidity through a single listed security; increased demand from expected index inclusion; simplified financial reporting and elimination of partnership tax reporting forms. The transaction is tax-deferred for Canadian and U.S. investors. All BBU limited partnership units, BBUC class A exchangeable shares and redemption-exchange units in BBU held by Brookfield will be exchanged for new class A shares of BBU Inc. on a one-for-one basis. The class A shares of BBU Inc. are expected to be listed on both the NYSE and TSX and have a market capitalization that reflects the combined capitalization of BBU and BBUC. BBU and BBUC are expected to cease to be reporting issuers following closing of the transaction and BBU Inc. is expected to become a reporting issuer. There will be no change to Brookfield’s ownership of Brookfield Business Partners as a result of the transaction. BBU Inc. will pay an annual dividend of 25c per share, consistent with the current distribution to existing BBU unitholders and the current dividend to existing BBUC shareholders. The management fee payable to Brookfield Asset Management will be based on the market capitalization of BBU Inc. rather than the combined market capitalization of BBU and BBUC. Brookfield Asset Management will also receive incentive distributions based on the trading price of BBU Inc. An independent committee of each of BBU and BBUC comprising independent directors has been formed. The reorganization is expected to be completed during 1Q26.