Brookfield Business Partners Announces Renewal of Limited Partnership Unit Normal Course Issuer Bid

Rhea-AI Summary

Brookfield Business Partners L.P. (NYSE: BBU) has announced a normal course issuer bid to repurchase up to 5% of its outstanding units, totaling approximately 3.93 million units. This bid, approved by the TSX, aims to acquire units that may not reflect their full value. The buyback will begin on August 17, 2021, and continue until August 16, 2022. In the previous bid, the company repurchased 1.73 million units at an average price of $33.99. All repurchased units will be canceled, following compliance with relevant securities laws.

Positive

• Authorization to repurchase up to 3,929,206 units, indicating confidence in stock valuation.
• Previous buyback resulted in repurchase of 1,732,491 units, demonstrating a commitment to shareholder value.

Negative

• None.

BROOKFIELD, NEWS, Aug. 12, 2021 (GLOBE NEWSWIRE) -- Brookfield Business Partners L.P. (NYSE: BBU) (TSX: BBU.UN) (“Brookfield Business Partners”) today announced that the Toronto Stock Exchange (the “TSX”) has accepted a notice filed by Brookfield Business Partners of its intention to renew its normal course issuer bid for its limited partnership units (the “units”). Brookfield Business Partners believes that in the event the units trade in a price range that does not fully reflect their value, the acquisition of units may represent an attractive use of available funds.

Under the normal course issuer bid, the Board of Directors of the general partner of Brookfield Business Partners authorized the partnership to repurchase up to 5% of the total issued and outstanding units, or 3,929,206 units. At the close of business on August 10, 2021, there were 78,584,113 units issued and outstanding. Under the normal course issuer bid, Brookfield Business Partners may purchase up to 18,938 units on the TSX during any trading day, which represents 25% of the average daily trading volume of 75,753 units on the TSX for the period February 1, 2021 to July 31, 2021. Repurchases are authorized to commence on August 17, 2021 and will terminate on August 16, 2022, or earlier should Brookfield Business Partners complete its repurchases prior to such date.

Under the prior twelve-month normal course issuer bid beginning on August 17, 2020, Brookfield Business Partners was authorized to acquire up to 4,016,508 units and repurchased 1,732,491 units at a USD equivalent weighted average price of $33.99 per unit through the facilities of the TSX and the New York Stock Exchange, and through the facilities of designated exchanges and alternative trading systems in Canada and the United States.

All purchases under the renewed normal course issuer bid will be made through the facilities of the TSX and the New York Stock Exchange, and through the facilities of designated exchanges and alternative trading systems in Canada and the United States, and all units acquired under the normal course issuer bid will be cancelled. Repurchases will be subject to compliance with applicable United States federal securities laws, including Rule 10b-18 under the United States Securities Exchange Act of 1934, as amended, as well as applicable Canadian securities laws.

Brookfield Business Partners will enter into an automatic purchase plan on or about the week of September 27, 2021 in relation to the normal course issuer bid. The automatic purchase plan will allow for the purchase of units, subject to certain trading parameters, at times when Brookfield Business Partners 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, units will be repurchased in accordance with management’s discretion and in compliance with applicable law.

Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management, a leading global alternative asset manager with over $625 billion of assets under management. More information is available at www.brookfield.com.

Brookfield Business Partners is listed on the New York and Toronto stock exchanges. For more information, please visit our website at https://bbu.brookfield.com.

For more information, please visit our website at https://bbu.brookfield.com or contact:

Media: Claire Holland Tel: (416) 369-8236 Email: claire.holland@brookfield.com		Investors: Alan Fleming Tel: (416) 645-2736 Email: alan.fleming@brookfield.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND INFORMATION

Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield Business Partners, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “believes,” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” and “will.”

Although we believe that our 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 our control, which may cause the actual results, performance or achievements of Brookfield Business Partners 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: 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 the ongoing novel coronavirus pandemic (“COVID-19”); the behavior of financial markets, including fluctuations in interest and foreign exchange rates; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; strategic actions including dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the ability to appropriately manage human capital; the effect of applying future accounting changes; business competition; operational and reputational risks; technological change; changes in government regulation and legislation within the countries in which we operate; governmental investigations; litigation; changes in tax laws; ability to collect amounts owed; catastrophic events, such as earthquakes; hurricanes and pandemics/epidemics; the possible impact of international conflicts and other developments including terrorist acts and cyber terrorism; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

In addition, our future results may be impacted by the government mandated restrictions resulting from COVID-19 and the related global reduction in commerce and travel and substantial volatility in stock markets worldwide, which may negatively impact our revenues, affect our ability to identify and complete future transactions, impact our liquidity position and result in a decrease of cash flows and impairment losses and/or revaluations on our investments and assets, and therefore we may be unable to achieve our expected returns. See “Risks Associated with the COVID-19 Pandemic” in the “Risk Factors” section included in our Form 20-F for the year ended December 31, 2020.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, Brookfield Business Partners 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 the normal course issuer bid announced by Brookfield Business Partners?

Brookfield Business Partners announced a normal course issuer bid to repurchase up to 5% of its outstanding units, approximately 3.93 million units.

When will Brookfield's buyback program commence?

The buyback program will begin on August 17, 2021, and last until August 16, 2022.

How many units were repurchased in the previous normal course issuer bid?

In the previous bid, Brookfield repurchased 1,732,491 units at an average price of $33.99.

What is the maximum number of units Brookfield can repurchase daily under the bid?

Brookfield may purchase up to 18,938 units on the TSX during any trading day.

Are repurchased units going to be canceled?

Yes, all units acquired under the normal course issuer bid will be canceled.