Investment Q&A

Thank you for the catch; it is BAM, but BN put out its own press release which threw us off. We have fixed this; It is complicated, and we would really like to await the circular for full information before commenting fully. But essentially BAM will issue to BN Class A shares in exchange for its common shares of Brookfield Asset Management ULC currently owned by BN. Thus, BAM will then own only the publicly traded shares of BAM, and not common shares (not traded). Thus, the value of BAM to BN should be more easily identified by investors, as they can simply look at market value without a holding company/structure discount. BN believes this will bring out value and allow BAM/BN to be more widely held by indices and funds. The discount referenced in the press release is likely too large. Analysts know of course that BN ultimately owns most of BAM already, it is just that these shares were held in a different form. Still, we would expect some shareholder value to be created here with a 'cleaner' structure. We do not think shareholders will be negatively impacted in any way from this particular move. If BAM does move to the US, there could be tax repercussions but again we need to see the circular here.