Brookfield Asset Management (BAMa.TO) said on Tuesday it will merge the power generating assets of one of its units with Brookfield Renewable Power Fund (BRC_u.TO) to form one of the world's largest, listed renewable power businesses.
The combination of Brookfield Renewable Power Fund with the power assets of Brookfield Renewable Power Inc will create a business with 4,400 megawatts of installed power-generating capacity in Canada, the United States and Brazil.
The portfolio will include 168 hydroelectric generating stations on 67 river systems, and two wind farms. Another three wind farms and four hydro facilities are under construction.
"The combination of these two portfolios creates one of the world's largest pure-play renewable power platforms," said Richard Legault, chief executive of Brookfield's power operations.
The new entity, Brookfield Renewable Energy Partners LP, with approximately $13 billion of power generating assets, will have 265.2 million units outstanding and expects to establish an initial distribution of $1.35 per unit.
The deal is expected to add to the earnings of unitholders of Brookfield Renewable Power Fund and will likely increase annual distributable cash per unit by more than 10 percent on average over the next five years.
Units of Brookfield Renewable Power Fund were up C$1.15, or nearly 5 percent, at C$24.54 on the Toronto Stock Exchange on Tuesday morning.