Brookfield Business Partners to Sell Controlling Interest in North American Palladium
October 07 2019 - 11:33AM
Brookfield Business Partners L.P. (NYSE: BBU)
(TSX:BBU.UN) (“Brookfield Business Partners”), together with its
institutional partners (collectively “Brookfield”), today announced
an agreement to sell its 81% interest in North American Palladium
Inc. (TSE: PDL) (“NAP”), a Canadian mining company and the only
pure-play palladium producer in the world, to Impala Platinum
Holdings Limited (JSE: IMP) (“Implats”).
Implats has agreed to acquire all the issued and
outstanding shares of NAP held by Brookfield for total proceeds of
approximately $570 million. The agreement is part of a broader
transaction whereby Implats will also acquire the remaining 19% of
NAP’s issued and outstanding shares not held by Brookfield.
Since Brookfield recapitalized NAP and acquired
control of the company in 2015, NAP has completed a successful
operational turnaround resulting in consistently strong earnings,
significantly increased palladium production and mine life, growth
of reserves through exploration activities, and reduced costs.
Palladium demand has remained robust, supported by strong demand
from the auto industry for use in catalytic converters that support
reduced emissions.
Sale proceeds to Brookfield Business Partners
for its 20% ownership interest in NAP are approximately
$130 million, after taxes.
Transaction Process
Closing of the transaction is subject to NAP
shareholder approval and customary closing conditions and is
expected to occur in Q4 2019.
Brookfield Business Partners is
a business services and industrials company focused on owning and
operating high-quality businesses that benefit from barriers to
entry and/or low production costs.
Brookfield Business Partners is the flagship
listed business services and industrials company of Brookfield
Asset Management, a leading global alternative asset manager with
more than US$500 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. Important information may be
disseminated exclusively via the website; investors should go to
https://bbu.brookfield.com to access this information.
Media Claire
Holland Brookfield Business Partners Tel: +1 416 369 8236 Email:
claire.holland@brookfield.com |
Investor
Relations Alan Fleming Brookfield Business Partners Tel:
+1 416 645 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. The words “will,” “may,”
"expects," derivatives thereof and other expressions which are
predictions of or indicate future events, trends or prospects and
which do not relate to historical matters will tend to identify
forward-looking statements. Forward-looking statements in this news
release include statements regarding the expected completion of the
transaction described herein and the anticipated timing
thereof.
Although we believe that the forward-looking
statements we make are based upon reasonable assumptions and
expectations, the reader should not place undue reliance on them or
any other forward-looking statements or information in this news
release. The future performance and prospects of Brookfield
Business Partners are subject to a number of known and unknown
risks, uncertainties and other factors, many of which are beyond
our control. Factors that could cause actual results to differ
materially from those contemplated or implied by forward-looking
statements in this news release 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; 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 and
in particular completion of the acquisition referred to in this
news release, which cannot be assured; 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 and hurricanes; 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.
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.
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