Brookfield $300m richer via offering

Brookfield Asset Management is raising cash by selling stock in its new $13bn renewable energy vehicle. The capital could be used to finance new acquisitions.

Brookfield Asset Management (BAM) has added $300 million to its coffer with a secondary offering of its newly created renewable energy partnership.

Toronto-headquartered BAM made an 11-million unit sale of Brookfield Renewable Energy Partners (BREP), decreasing its stake in the vehicle from 73 percent to 68 percent. The Canadian asset manager priced BREP at around $26.25 per share.

BAM said the offering helped “diversify our investor base” while improving liquidity. It also highlighted that its holding in BREP might get diluted further, since the underwriters on the offer can exercise an over-allotment clause within the next 30 days.

The Canadian asset manager has stated a desire to acquire new businesses, especially in Europe. Andrew Willis, Brookfield spokesman, confirmed Brookfield is looking at new acquisitions, citing a September purchase of Tunel San Cristobal and Vespucio Norte, in Santiago, Chile, as examples of recent activity.

BREP was born in fall 2011 when Brookfield combined its entire renewable energy portfolio, including its Brookfield Renewable Energy business, into a single, $13 billion entity. The new fund went on to list on the Toronto Stock Exchange late last year, with Brookfield planning to also list the vehicle on the New York Stock Exchange during the first quarter of 2012.