Author Topic: BAM - Brookfield Asset Management  (Read 422158 times)

Xerxes

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Re: BAM - Brookfield Asset Management
« Reply #1260 on: January 15, 2020, 11:33:03 AM »
This is from couple of years ago, interviewing the heads of Bain Capital LP, Brookfield Asset Management, Providence Equity Partners and The Carlyle Group.
thought would be interesting given the discussion here

https://www.youtube.com/watch?v=pW8lAgpIPjo

On a different topic, not sure if this was posted earlier.
It would be interesting to see a India-specific vehicle that has close ties to Ambani.

https://www.bloomberg.com/news/articles/2019-12-19/brookfield-said-to-mull-over-1-billion-reit-listing-in-India


John Hjorth

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”In the race of excellence … there is no finish line.”
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villainx

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Re: BAM - Brookfield Asset Management Inc.
« Reply #1262 on: January 17, 2020, 11:40:03 AM »
Brookfield Renewable Partners Press Release [January 13th 2020] : Brookfield Renewable Submits Proposal to Acquire TerraForm Power on an All Stock Basis; Announces a 5% Distribution Increase.

This reminds me a bit about the GGP transaction for BPY, however here for BEP and not a cash consideration.

Terraform Power Inc. website.

Does this seem to be a fair transaction? I'm not in BEP, though I've always been looking to get in.


gokou3

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Re: BAM - Brookfield Asset Management Inc.
« Reply #1263 on: January 17, 2020, 12:00:37 PM »
Brookfield Renewable Partners Press Release [January 13th 2020] : Brookfield Renewable Submits Proposal to Acquire TerraForm Power on an All Stock Basis; Announces a 5% Distribution Increase.

This reminds me a bit about the GGP transaction for BPY, however here for BEP and not a cash consideration.

Terraform Power Inc. website.

Does this seem to be a fair transaction? I'm not in BEP, though I've always been looking to get in.

If I were to compare the reactions to this TERP transaction vs. TOO one, there were way more pushback on the TOO buyout.  I think the difference in reaction is attributable to the price trends of the two companies prior to the transaction.  TOO got taken out close to its all-time low, whereas TERP had a considerable rise (>50%) since BAM (BEP) took control and BAM is paying a 10% premium above the undisturbed price.

Seems to me TERP and BEP are trading on a comparable EV/EBITDA basis (mid-teens?).  I owned both last year but exited based on valuation concern (on both the issuers and on the overall market).  Their good growth prospect and skilled operation may warrant this valuation though.

The fact that BAM is issuing BEPC shares (Corp, no K1) for the TERP buyout is a smart move too IMO.  Instantly boosting BEPC shares outstanding instead of having only 1/10 of the original O/S as they spelled out earlier.

villainx

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Re: BAM - Brookfield Asset Management
« Reply #1264 on: January 17, 2020, 01:13:05 PM »
This is from couple of years ago, interviewing the heads of Bain Capital LP, Brookfield Asset Management, Providence Equity Partners and The Carlyle Group.
thought would be interesting given the discussion here

https://www.youtube.com/watch?v=pW8lAgpIPjo

Thanks for this!

John Hjorth

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Re: BAM - Brookfield Asset Management Inc.
« Reply #1265 on: January 17, 2020, 01:13:25 PM »

Brookfield Renewable Partners Press Release [January 13th 2020] : Brookfield Renewable Submits Proposal to Acquire TerraForm Power on an All Stock Basis; Announces a 5% Distribution Increase.

This reminds me a bit about the GGP transaction for BPY, however here for BEP and not a cash consideration.

Terraform Power Inc. website.

Does this seem to be a fair transaction? I'm not in BEP, though I've always been looking to get in.

villainx,

In what context "fair"? It's capitalism. A premium offered of ~11 percent according to market price, by a share/share swap between TerraForm shares and BEPC shares.
« Last Edit: January 17, 2020, 01:14:58 PM by John Hjorth »
”In the race of excellence … there is no finish line.”
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villainx

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Re: BAM - Brookfield Asset Management
« Reply #1266 on: January 17, 2020, 01:20:53 PM »
In what context "fair"? It's capitalism. A premium offered of ~11 percent according to market price, by a share/share swap between TerraForm shares and BEPC shares.

I was trying to find the right word.  But I think mostly in the context that gokou3 elaborated.  Where all the stakeholders are more or less okay with the deal.  Not to combat disgruntle minority shareholders, just more in terms of Brookfield's reputation as being "fair" partners, and continuing to get into the door and deals as "fair" partners. 

Brookfield has done what seems to be quite a bit of these type of deals, GGP, TOO, more, so just wondering about it.

John Hjorth

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Re: BAM - Brookfield Asset Management
« Reply #1267 on: January 17, 2020, 03:24:10 PM »
In what context "fair"? It's capitalism. A premium offered of ~11 percent according to market price, by a share/share swap between TerraForm shares and BEPC shares.

I was trying to find the right word.  But I think mostly in the context that gokou3 elaborated.  Where all the stakeholders are more or less okay with the deal.  Not to combat disgruntle minority shareholders, just more in terms of Brookfield's reputation as being "fair" partners, and continuing to get into the door and deals as "fair" partners. 

Brookfield has done what seems to be quite a bit of these type of deals, GGP, TOO, more, so just wondering about it.

I simply do not understand your line of thinking here, villainx.
”In the race of excellence … there is no finish line.”
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villainx

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Re: BAM - Brookfield Asset Management
« Reply #1268 on: January 18, 2020, 07:06:29 AM »
In what context "fair"? It's capitalism. A premium offered of ~11 percent according to market price, by a share/share swap between TerraForm shares and BEPC shares.

I was trying to find the right word.  But I think mostly in the context that gokou3 elaborated.  Where all the stakeholders are more or less okay with the deal.  Not to combat disgruntle minority shareholders, just more in terms of Brookfield's reputation as being "fair" partners, and continuing to get into the door and deals as "fair" partners. 

Brookfield has done what seems to be quite a bit of these type of deals, GGP, TOO, more, so just wondering about it.

I simply do not understand your line of thinking here, villainx.

Mainly from TOO where some online places had shareholder claiming BAM was bullying or doing a take under. I meant fair in the sense that most shareholders are content and BAM shows to be good partner. It’s more fair in the capitalist sense that Brookfield can continue to have reputation of good partners to continue getting good deals.

Edit: I'm also not saying Brookfield are blood thirsty PE vultures, just that being viewed as preferred partners should have value. 
« Last Edit: January 18, 2020, 09:18:37 AM by villainx »

ValueMaven

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Re: BAM - Brookfield Asset Management
« Reply #1269 on: January 19, 2020, 01:03:11 PM »
Good recent interview w/ Flatt ... although the guy interviewing him doesn't understand basic net income calculations ... (he said something like: $500bn in AUM at 10% = $50B of net income .. not a lot of firms out there doing that) ...

https://www.youtube.com/watch?v=8JD5rMHvjMU