Brookfield Business Partners to Sell Big Stake in North American Palladium

https://dailyalts.com/wp-content/uploads/2019/10/52e3d4404352a414ea898579ce203e7c1d22dfe05558784e73277cd3_640.jpg

Impala Platinum moves to control only pure-play palladium firm

Brookfield Business Partners announced a plan to sell its 81% interest in North American Palladium.

The real state giant is selling the Canadian mining company and only global pure-play palladium producer to Impala Platinum Holdings (Implats).

The deal will see Implats buy all outstanding NAP stock  from Brookfield for roughly $750 million.

Implats is also buying the other 19% of NAP stock not held by Brookfield.

Details of the Brookfield Business Partners Deal

Since Brookfield Business Partners recapitalized NAP and acquired control of the company in 2015, NAP has completed a successful operational turnaround.

These efforts resulted in consistently strong earnings, significantly increased palladium production and mine life, growth of reserves through exploration activities, and reduced costs.

According to a press release on the deal, palladium demand has remained robust. Demand is supported by the auto industry for use in catalytic converters that help cut greenhouse emissions. Terms of the deal state that Brookfield Business Partners will generate for its 20% ownership interest in NAP about $130 million, after taxes.

Finally, Brookfield originally made a $130 million loan to North American Palladium. This loan would convert to a 92% equity stake when the business struggled. Furthermore, the company sold 10% of its stake to the public in 2o15. That deal produced proceeds of about $75 million.

[Related: Can Apollo Get a Win with ADT after Canadian Services Sale]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/01/dragon-872933_640.jpg
FinTech: China Tightens Antitrust Regulatory Screws On Fintechs
January 22, 2021     FinTech, Latest News, News, Regulations

The People’s Bank of China published a draft set of rules on Wednesday for anti-trust regulation of the non-bank payment providers in the fintech sector. The draft is in the…

https://dailyalts.com/wp-content/uploads/2021/01/bitcoin-4353069_640.jpg
Digital Assets: BlackRock Dips Its Toes In Bitcoin Waters
January 22, 2021     Digital Assets, Latest News, News

Filings out Wednesday show that the BlackRock Strategic Income Opportunities Portfolio and BlackRock Global Allocation Fund may invest in cash-settled bitcoin futures, among other assets. BlackRock (NYSE: BLK), the world’s…

https://dailyalts.com/wp-content/uploads/2021/01/summer-169643_640.jpg
Artificial Intelligence: AI Helping Manage Wind Farms By Forecasting Wind Conditions
January 22, 2021     Artificial Intelligence, News

AI is playing an increasingly bigger role in the management of wind energy, wind farms, and the maintenance of wind turbines through machine condition monitoring systems. Google (NASDAQ: GOOGL) predicts…

https://dailyalts.com/wp-content/uploads/2021/01/electric-car-2783573_640.jpg
Alternative Investments/ESG: Harvest Portfolios Launches The Harvest Clean Energy ETF

Harvest Portfolios Group Inc. completed last week the initial offering of Class A Units of the Harvest Clean Energy ETF (TSE: HCLN). The units of the ETF commenced trading on…