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.
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.
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.
Claire Holland Brookfield Business Partners Tel: +1 416 369 8236 Email: firstname.lastname@example.org
Alan Fleming Brookfield Business Partners Tel: +1 416 645 2736 Email: email@example.com
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.
Latest posts by Ted Liu (see all)
- Voilà! secures $3M first round of financing - October 10, 2019
- Yapla secures strategic investment from La Fabrique by CA - October 9, 2019
- MaRS Catalyst Fund spins out as Amplify Capital with second fund - October 9, 2019