{"id":714514,"date":"2022-11-22T17:33:00","date_gmt":"2022-11-22T22:33:00","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/brookfield-reinsurance-announces-record-date-for-the-special-distribution\/"},"modified":"2022-11-22T17:33:00","modified_gmt":"2022-11-22T22:33:00","slug":"brookfield-reinsurance-announces-record-date-for-the-special-distribution","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/brookfield-reinsurance-announces-record-date-for-the-special-distribution\/","title":{"rendered":"Brookfield Reinsurance Announces Record Date for the Special Distribution"},"content":{"rendered":"
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BROOKFIELD, NEWS, Nov. 22, 2022 (GLOBE NEWSWIRE) — Brookfield Reinsurance (NYSE, TSX: BAMR) (\u201cBrookfield Reinsurance\u201d or the \u201cCompany\u201d) today announced that it has set a distribution record date of December 2, 2022 (the \u201cRecord Date\u201d) for the previously announced special distribution (the \u201cSpecial Distribution\u201d) of shares of Brookfield Asset Management Ltd. (the \u201cManager shares\u201d) to the holders of its class A exchangeable limited voting shares (\u201cBrookfield Reinsurance Class A Shares\u201d) and class B limited voting shares (\u201cBrookfield Reinsurance Class B Shares\u201d).<\/p>\n

\n Background \u2013 Brookfield Arrangement<\/strong>\n <\/p>\n

Brookfield Asset Management Inc. (\u201cBrookfield\u201d) announced earlier today that it has received all material approvals for the previously announced transaction for the public listing and distribution of a 25% interest in its asset management business, through Brookfield Asset Management Ltd. (the \u201cManager\u201d) by way of a plan of arrangement (\u201cBrookfield Arrangement\u201d). The transactions contemplated by the Brookfield Arrangement will result in the division of Brookfield into two publicly traded companies \u2013 Brookfield Asset Management Inc. (to be renamed \u201cBrookfield Corporation\u201d) and the Manager.<\/p>\n

\n The Special Distribution <\/strong>\n <\/p>\n

If the Brookfield Arrangement is completed, Brookfield Reinsurance intends to undertake the Special Distribution on or about December 9, 2022, being the expected effective date of the Brookfield Arrangement. Pursuant to the Special Distribution, holders of Brookfield Reinsurance Class A Shares and Brookfield Reinsurance Class B Shares as of the Record Date, which is also the record date for the Brookfield Arrangement, will be entitled to receive one (1) Manager share for every four (4) Brookfield Reinsurance Class A Shares or Brookfield Reinsurance Class B Shares held as of the Record Date, while retaining their shares of Brookfield Reinsurance. Holders of Brookfield Reinsurance Class A Shares and Brookfield Reinsurance Class B Shares will not be entitled to receive any fractional interest in a Manager share, and those holders who would otherwise be entitled to a fractional Manager share will instead receive a cash payment.<\/p>\n

At a special meeting of shareholders of Brookfield Reinsurance on November 9, 2022, holders of Brookfield Reinsurance Class A Shares and Brookfield Reinsurance Class B Shares approved a resolution authorizing the payment of the Special Distribution by way of a capital reduction resulting in a return of capital. Therefore, it is expected that the Special Distribution will be effected as a capital reduction resulting in a return of capital, and not by way of a dividend. Holders of Brookfield Reinsurance Class A Shares will not be required to pay for the Manager shares to be received upon completion of the Special Distribution or tender or surrender Brookfield Reinsurance Class A Shares or take any other action in connection with the Special Distribution.<\/p>\n

Following completion of the Special Distribution, it is expected that the Brookfield Reinsurance Class A Shares will continue to be the economic equivalent of class A limited voting shares of Brookfield (the \u201cCorporation Class A Shares\u201d) and will remain exchangeable on a one for one basis. If a holder of Brookfield Reinsurance Class A Shares wishes to exchange one or more of their Brookfield Reinsurance Class A Shares for Corporation Class A Shares in advance of the Brookfield Arrangement, he or she is required to complete and deliver a notice of exchange by the close of business on November 28, 2022. Any notice of exchange received on or after the close of business on November 28, 2022 will not be processed, and no Corporation Class A Shares will be delivered, until following completion of the Special Distribution.<\/p>\n

The New York Stock Exchange (the \u201cNYSE\u201d) and the Toronto Stock Exchange (the \u201cTSX\u201d) will both implement \u201cdue bill\u201d trading commencing December 1, 2022 (one trading day before the Record Date) and ending at the close of business on December 9, 2022, inclusively. During this time period, the \u201cdue bill\u201d trading designation will impact how the Brookfield Reinsurance Class A Shares will trade on both exchanges. Investors should be aware of the following features:<\/p>\n