Good news, there’s a simpler Brookfield emerging

Résumé détaillé

The notoriously complex web of companies has a goal: Make it easier to understand, and invest

If you’ve ever considered investing in one of the several corporate entities emblazoned with the name Brookfield, you may have emerged from your research a little dazed.

But good news is at hand. Brookfield is in the final stages of a streamlining process that is designed to make things simpler for investors. Full disclosure: I’m one of them, and I crave simplicity.

Granted, this streamlining process is not reducing the number of publicly traded businesses that operate under the parent company, Brookfield Corp. – which, yeah, can still look a bit unwieldy at first glance.

Brookfield Infrastructure will still invest in utilities and energy; Brookfield Renewables will still handle clean energy assets, including wind, solar and nuclear.

Brookfield Business will continue to focus on private equity, or the companies that aren’t publicly traded; and Brookfield Asset Management will continue to generate fees by managing massive investment funds on behalf of institutional and private investors.

Previously, many of these operating businesses had more than one tradeable security. Some had units in limited partnerships and shares in corporations, even though they were economically identical. That meant different ticker symbols, tax implications and – most bizarrely – valuations.

Brookfield Corp., which has stakes in all the operating units, is valued at over $130-billion, based on the combined value of its shares on Tuesday morning.

That makes it more valuable than Canadian Pacific Kansas City Ltd., Suncor Energy Inc. and Manulife Financial Corp.

The company believes that simplifying the operating units can only help. Over the past year, Brookfield has been on a mission to combine the various equities, making them more palatable to more investors.

Début de l'article, extrait de The Globe and Mail (Report on Business). Pour lire la suite, ouvrez l'article chez le média.