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Brookfield Asset Management to trade when-issued market

2022-11-29 20:45 ET - Miscellaneous

The Toronto Stock Exchange reports that Class A limited voting shares of Brookfield Asset Management Ltd. (New Brookfield) will be posted for trading on a when-issued basis at the open on Dec. 1, 2022. According to the TSX, there will be up to 402,725,500 Class A shares issued and outstanding, and up to 41 million shares reserved for issuance. The shares will trade under the symbol NBAM, in Canadian dollars and with Cusip No. 113004 10 5.

As TSX described in its bulletin regarding Brookfield Asset Management Inc. (Brookfield), holders of Class A limited voting shares of Brookfield of record as of Dec. 2, 2022, will receive 0.25 of a New Brookfield Class A share for each Brookfield Class A share held pursuant to a plan of arrangement. Holders of Brookfield Class A shares need not take any action in order to receive the New Brookfield Class A shares to which they are entitled, payable Dec. 9, 2022.

The TSX notes that the New Brookfield Class A shares will be concurrently listed on the New York Stock Exchange on a when-issued basis under the symbol BAM.WI. It is expected that the New Brookfield Class A shares will begin trading on a regular basis on the NYSE under the symbol BAM at the open on Dec. 12, 2022.

According to the TSX, New Brookfield was established by Brookfield to become a company through which investors can directly access its pure-play global alternative asset management business currently carried on by Brookfield. New Brookfield currently expects to begin paying dividends in the first quarter of 2023 to its shareholders on a quarterly basis, equal to approximately 90 per cent of its distributable earnings in the preceding quarter. New Brookfield's transfer agent and registrar is TSX Trust Company at its principal office in Montreal, and its fiscal year-end is Dec. 31.

Subject to the arrangement becoming effective as expected on Dec. 9, 2022, all trades in the when issued market from and including Dec. 1, 2022, to and including Dec. 9, 2022, will be for special settlement on Dec. 14, 2022, and will appear on the settlement report from CDS Clearing and Depository Services Inc. Parties who hold Brookfield Class A shares (or who are entitled to receive Brookfield Class A shares under a legally binding unconditional contract) on the record date may sell, in the when-issued market, New Brookfield Class A shares, up to the number of New Brookfield Class A shares they would receive upon the completion of the arrangement, without being subject to restrictions on short sales. The TSX will not be liable directly or indirectly for any loss attributable to the exercise of any of its above-described rights, or to the cancellation, settlement or failed settlement of any trade or trades made in the New Brookfield Class A shares.

The TSX notes that if the arrangement becomes effective on Dec. 9, 2022, then: (i) on Dec. 9, 2022 (at the close), trading of the New Brookfield Class A shares on a when-issued basis will terminate; and (ii) on Dec. 12, 2022 (at the opening), the New Brookfield Class A shares will commence trading on a regular basis under the current name, the new stock symbol BAM and the current Cusip number. If the arrangement does not become effective, all trades in the New Brookfield Class A shares will be cancelled. No securities will be delivered or deliverable, and no money will be owed by purchasers to sellers.

For more information, see Brookfield's management information circular dated Sept. 30, 2022, and its news release dated Nov. 22, 2022, both of which are available on SEDAR. The TSX has issued separate bulletins regarding the distribution of the New Brookfield Class A shares and due-bill trading of the Brookfield Class A shares, and the ex distribution market for Brookfield Corp.

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