Brookfield to combine hydro-based renewable power businesses

TORONTO, Ontario, Canada 9/28/11 (PennWell) -- Brookfield Renewable Power Fund and the power generating assets of Brookfield Renewable Power Inc. are to be combined to create Brookfield Renewable Energy Partners L.P., a global publicly traded partnership focused on renewable power generation, primarily hydropower.

Brookfield Renewable Power Fund is a Canadian income fund with more than 1,000 MW of generating capacity including 42 hydroelectric plants and two wind farms in Quebec, Ontario, and British Columbia in Canada and in New England in the United States.

Brookfield Renewable Power Inc. owns more than 170 hydroelectric plants totaling 4,400 MW, plus hydro and wind plants in development, in the United States and Brazil. Itself owned by Brookfield Asset Management, Brookfield Renewable Power Inc. holds about 34 percent of the outstanding units of Brookfield Renewable Power Fund.

The Board of Trustees of Brookfield Renewable Power Trust formed a special committee of independent trustees that concluded the combination is in the best interests of the fund and its minority unitholders. The panel unanimously recommended approval of the combination, the companies said Sept. 13.

The Board of Directors of Brookfield Renewable Power Preferred Equity Inc. also recommended that preferred shareholders approve the combination.

All outstanding assets of Brookfield Renewable Power Fund, as well as Brookfield Power's Brazilian, U.S., and Canadian power assets are to be combined into the new Brookfield Renewable Energy Partners L.P. The Fund unitholders are to receive one limited partnership unit of Brookfield Renewable Energy Partners for every Fund unit.

The companies highlighted the combination's focus on attractive hydroelectric assets.

"BREP will benefit from an asset class representing one of the longest life, lowest cost, and most environmentally preferred forms of power generation," the firms said. "BREP's predominantly hydroelectric portfolio will be unique compared to other listed renewable power platforms and its scale and quality will provide significant scarcity value to investors."

Meetings of security holders are expected to be held in October and November to win approval of the combination. The transaction also is subject to regulatory, governmental, corporate, or contractual consents with closing expected in the fourth quarter of 2011.

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