Brookfield exits North American Palladium with $570M sale to Impala Platinum

Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN), together with its institutional partners, have entered into an agreement to sell its 81% interest in North American Palladium Inc. (TSE: PDL), a Canadian mining company and the only pure-play palladium producer in the world, to Impala Platinum Holdings Limited (JSE: IMP) for $570 million.

The agreement is part of the proposed $1 billion acquisition by Implats of all the issued and outstanding shares. Under the terms of the arrangement agreement, shareholders of NAP, other than Brookfield, will receive $19.74 per NAP common share in cash and Brookfield will receive $16.00 per NAP common share in cash.

Brookfield Capital Partners Ltd. recapitalized NAP and acquired control in 2015.

Brookfield Business Partners will receive $130 million after taxes for its 20% ownership interest in NAP.

photo credit: North American Palladium Inc.

News Release

BROOKFIELD BUSINESS PARTNERS TO SELL CONTROLLING INTEREST IN NORTH AMERICAN PALLADIUM

BROOKFIELD, NEWS, October 7, 2019 (GLOBE NEWSWIRE) — 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.

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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

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.