Brookfield to consolidate renewable power assets

Sep 14, 2011 - Canadian Brookfield Asset Management Inc (TSE:BAM.A) will merge the power assets of its wholly-owned unit Brookfield Renewable Power Inc with the assets of income fund Brookfield Renewable Power Fund (TSE:BRC.UN).

The new entity, named Brookfield Renewable Energy Partners (BREP), will have one of the largest green energy portfolios in the world with USD 13 billion (EUR 9.5bn) in power assets located in Canada, the USA and Brazil, the green power and infrastructure assets manager said in a statement yesterday.

Under the proposed consolidation deal, unit holders of Brookfield Renewable Power Fund, which is managed by Brookfield Renewable Power, will receive one limited partnership unit in BREP for each fund unit held. After the combination, Brookfield will own 73% of BREP and the fund shareholders will own the remaining 27%.

The deal is expected to increase the annual distributable cash per unit to the fund shareholders by 10% over the next five years.

The new company will own 4,400 MW of installed capacity, including 168 hydropower plants and two wind farms, and three wind farms and four hydropower plants under construction that will boost its total power capacity to 4,800 MW.

BREP will trade on the Toronto Stock Exchange and may apply for trading on the New York Stock Exchange as well.

The deal, which depends on shareholder, regulatory, governmental and other approvals, is seen to close in the fourth quarter.

(USD 1.0 = EUR 0.729)

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