Brookfield Asset Management Announces Renewal of Normal Course Issuer Bid

Rhea-AI Summary

BROOKFIELD, NEWS, May 19, 2022 – Brookfield (NYSE: BAM) has received TSX approval for a normal course issuer bid to repurchase up to 138.7 million Class A Shares, representing 10% of their public float. The buyback will run from May 25, 2022, to May 24, 2023, or until purchases are completed. As of May 17, 2022, Brookfield had 1.64 billion Class A Shares outstanding, with a public float of 1.39 billion. The company purchased 5.83 million shares in the previous program, averaging a price of US$51.72. Brookfield views repurchasing shares as an attractive investment option.

Positive

• Approval for repurchase of up to 138.7 million Class A Shares enhances shareholder value.
• The buyback program reflects Brookfield's confidence in the future value of its shares.
• Previous buyback achieved an average purchase price of US$51.72, indicating effective capital management.

Negative

• None.

BROOKFIELD, NEWS, May 19, 2022 (GLOBE NEWSWIRE) -- Brookfield (NYSE: BAM, TSX: BAM.A) today announced it has received approval from the Toronto Stock Exchange (“TSX”) for the renewal of its normal course issuer bid to purchase up to 138,664,974 Class A Limited Voting Shares (“Class A Shares”), representing 10% of the public float of Brookfield’s outstanding Class A Shares. Purchases under the bid will be made on the open market through the facilities of the TSX, the New York Stock Exchange (“NYSE”), and/or alternative trading systems. The period of the normal course issuer bid will extend from May 25, 2022 to May 24, 2023, or an earlier date should Brookfield complete its purchases. Brookfield will pay the market price at the time of acquisition for any Class A Shares purchased or such other price as may be permitted.

As at May 17, 2022, the number of Class A Shares issued and outstanding totaled 1,641,397,240 of which 1,386,649,739 shares represented the public float. In accordance with the rules of the TSX, the maximum daily purchase on the TSX under this bid will be 409,365 Class A Shares, which is 25% of 1,637,460 (the average daily trading volume for Class A Shares on the TSX for the six months ended April 30, 2022).

Since the last program and as of May 17, 2022, we purchased 5,829,618 shares; 1,967,121 Class A Shares through open market purchases on the TSX and 3,862,497 Class A Shares through open market purchases on the NYSE, of the 132,856,682 Class A Shares approved for purchase under Brookfield’s prior normal course issuer bid that commenced on May 25, 2021 and will expire on May 24, 2022. The weighted average price that Brookfield paid per Class A Share acquired under this bid was US$51.72. Brookfield is renewing its normal course issuer bid because it believes that, from time to time, the market price of its Class A Shares may not fully reflect the underlying value of its business and its future business prospects. Brookfield believes that, in such circumstances, the outstanding Class A Shares represent an attractive investment for Brookfield, since a portion of its excess cash generated on an annual basis can be invested for an attractive risk adjusted return through the issuer bid. All Class A Shares acquired by Brookfield under this bid will be cancelled and/or purchased by a non-independent trustee pursuant to the terms of Brookfield’s long-term incentive plans.

Brookfield intends to enter into an automatic purchase plan on or about the week of June 20, 2022 in relation to the normal course issuer bid. The automatic purchase plan will allow for the purchase of Class A Shares, subject to certain trading parameters, at times when Brookfield ordinarily would not be active in the market due to its own internal trading black-out period, insider trading rules or otherwise. Outside of these periods, Class A Shares will be repurchased in accordance with management’s discretion and in compliance with applicable law.

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About Brookfield
Brookfield (NYSE: BAM, TSX: BAM.A) is a leading global alternative asset manager with approximately $725 billion of assets under management across real estate, infrastructure, renewable power and transition, private equity, and credit. Brookfield owns and operates long-life assets and businesses, many of which form the backbone of the global economy. Utilizing its global reach, access to large-scale capital and operational expertise, Brookfield offers a range of alternative investment products to investors around the world—including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

For more information, please visit our website at www.brookfield.com or contact:

Media	Investor Relations
Kerrie McHugh	Linda Northwood
Tel: +1 212 618-3469	Tel: +1 416 359-8647
Email: kerrie.mchugh@brookfield.com	Email: linda.northwood@brookfield.com

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934 and “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. The words “believe”, “may”, “intend” and derivations thereof and other expressions that are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking statements.

In particular, the forward-looking information contained in this news release includes statements referring to potential future purchases by Brookfield of its Class A Shares pursuant to the company’s normal course issuer bid and automatic purchase plan. Although Brookfield believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond Brookfield’s control, which may cause the actual results, performance or achievements of Brookfield to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business including as a result of COVID-19 and the related global economic disruptions; (ii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates; (iii) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; and (iv) factors detailed from time to time in the documents filed by Brookfield with the securities regulators in Canada and the United States including in Management’s Discussion and Analysis under the heading “Business Environment and Risks”. Except as required by law, Brookfield undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

FAQ

What is Brookfield's normal course issuer bid?

Brookfield's normal course issuer bid allows the company to repurchase up to 138.7 million Class A Shares, which is 10% of its public float, to enhance shareholder value.

How long will Brookfield's buyback program last?

The buyback program will run from May 25, 2022, to May 24, 2023, or until the repurchases are completed.

What are the details of Brookfield's previous share repurchase?

In the previous program, Brookfield repurchased 5.83 million shares at an average price of US$51.72.

Why does Brookfield believe its shares are undervalued?

Brookfield believes that the market price of its Class A Shares may not fully reflect its underlying business value and future prospects.