Brookfield Business Partners Announces Renewal of Normal Course Issuer Bids for Units and Exchangeable Shares

Rhea-AI Summary

Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC) has announced the renewal of its normal course issuer bids for both its limited partnership units and exchangeable shares. The company is authorized to purchase up to 4,441,425 Units and 3,499,836 Exchangeable Shares, representing 5% of the issued and outstanding securities as of August 8, 2025.

The buyback program will run from August 19, 2025 to August 18, 2026. Daily purchase limits are set at 10,076 Units and 11,100 Exchangeable Shares on the TSX. Under the previous program, the company purchased 3,611,689 Units at an average price of US$22.54 and 2,957,523 Exchangeable Shares at an average price of US$25.93.

The company has implemented automatic repurchase plans to facilitate purchases during blackout periods, with all purchased securities to be cancelled upon acquisition.

Positive

• Authorization to repurchase 5% of outstanding Units and Exchangeable Shares shows confidence in company value
• Implementation of automatic repurchase plans enables consistent execution during blackout periods
• Strong execution of previous buyback program with substantial purchases completed
• Flexibility for investors to choose between partnership units or corporation shares

Negative

• Buyback program may reduce market liquidity for both Units and Exchangeable Shares
• Daily purchase limits of 25% of average trading volume may restrict buyback execution speed
• Previous buyback executed at relatively high average prices (US$22.54 for Units, US$25.93 for Shares)

Insights

Corporate Finance Analyst

Brookfield's share buyback renewal signals management confidence that shares trade below intrinsic value, providing shareholder-friendly capital allocation.

Brookfield Business Partners has announced the renewal of its share repurchase programs for both its limited partnership units (BBU) and exchangeable shares (BBUC), authorizing buybacks of up to 5% of outstanding securities through August 2026. This represents up to 4,441,425 Units and 3,499,836 Exchangeable Shares.

The company's explicit statement that shares "may from time to time trade in a price range that does not fully reflect their value" reveals management's belief that the market is undervaluing these securities. This perspective is further reinforced by their active participation in the previous buyback program, where they've already repurchased 3,611,689 Units at an average price of $22.54 and 2,957,523 Exchangeable Shares at $25.93.

The implementation of automatic repurchase plans is particularly noteworthy, as it enables continued buybacks during blackout periods when company insiders would normally be restricted from trading. This mechanism ensures consistent execution regardless of short-term market fluctuations or internal trading restrictions.

This capital allocation decision represents a shareholder-friendly move that potentially signals two things: first, management believes reinvesting in their own business via share repurchases offers better returns than alternative uses of capital; second, they have sufficient liquidity and operational confidence to commit to this program. The daily purchase limits (10,076 Units and 11,100 Exchangeable Shares) provide a structured approach that should minimize market impact while executing the program over its one-year duration.

BROOKFIELD, News, Aug. 15, 2025 (GLOBE NEWSWIRE) -- Brookfield Business Partners (NYSE: BBU, BBUC; TSX: BBU.UN, BBUC) today announced that the Toronto Stock Exchange (“TSX”) has accepted a notice filed by Brookfield Business Partners L.P. of its intention to renew its normal course issuer bid for its limited partnership units (“Units”) and a notice filed by Brookfield Business Corporation of its intention to renew its normal course issuer bid for its class A exchangeable subordinate voting shares (“Exchangeable Shares”). Brookfield Business Partners believes that the Units or the Exchangeable Shares may from time to time trade in a price range that does not fully reflect their value and that, in such circumstances, the acquisition of Units or Exchangeable Shares, as applicable, may represent an attractive use of available funds.

At the close of business on August 8, 2025, there were 88,828,512 Units and 69,996,738 Exchangeable Shares issued and outstanding. Brookfield Business Partners is authorized to purchase up to 4,441,425 Units and 3,499,836 Exchangeable Shares, representing up to 5% of the issued and outstanding Units and Exchangeable Shares, respectively, at the close of business on August 8, 2025. Under Brookfield Business Partners’ normal course issuer bids, it may purchase up to 10,076 Units and 11,100 Exchangeable Shares, respectively, on the TSX during any trading day, which represent 25% of the average daily trading volume of 40,306 Units and 44,400 Exchangeable Shares, respectively, on the TSX for the six months ended July 31, 2025.

Purchases under each normal course issuer bid are authorized to commence on August 19, 2025 and will terminate on August 18, 2026, or earlier should Brookfield Business Partners L.P. or Brookfield Business Corporation complete its authorized purchases under each respective normal course issuer bid prior to such date.

Under Brookfield Business Partners L.P.’s normal course issuer bid that commenced on August 19, 2024 and will expire on August 18, 2025, Brookfield Business Partners L.P. previously sought and received approval from the TSX to purchase up to 3,714,088 Units. As of August 8, 2025, Brookfield Business Partners and its affiliates purchased a total of 3,611,689 Units under its previous normal course issuer bid through the facilities of the TSX, the New York Stock Exchange and/or alternative trading systems in Canada and the United States at a weighted average price paid per Unit of US$22.54.

Under Brookfield Business Corporation’s normal course issuer bid that commenced on August 19, 2024 and will expire on August 18, 2025, Brookfield Business Corporation previously sought and received approval from the TSX to repurchase up to 3,647,722 Exchangeable Shares. As of August 8, 2025, Brookfield Business Corporation purchased a total of 2,957,523 Exchangeable Shares under its previous normal course issuer bid through the facilities of the TSX, the New York Stock Exchange and/or alternative trading systems in Canada and the United States at a weighted average price paid per Exchangeable Share of US$25.93.

Purchases of Units and Exchangeable Shares will be made through the facilities of the TSX, the New York Stock Exchange and/or alternative trading systems. All Units and Exchangeable Shares purchased by Brookfield Business Partners L.P. and Brookfield Business Corporation under the applicable normal course issuer bids will be cancelled. Purchases will be subject to compliance with applicable United States federal securities laws, including Rule 10b-18 under the United States Securities Exchange Act of 1934, as amended, as well as applicable Canadian securities laws.

Brookfield Business Partners has entered into automatic repurchase plans, which have been pre-cleared by the TSX, to allow for the purchase of Units or Exchangeable Shares, as applicable, subject to certain trading parameters, at times when Brookfield Business Partners would ordinarily not be active in the market due to its own internal trading black-out periods, insider trading rules or otherwise. Outside of these periods, Units and Exchangeable Shares will be purchased in accordance with management’s discretion and in compliance with applicable law. The actual number of Units and Exchangeable Shares purchased under the automatic plans, the timing of such purchases and the price at which Units and Exchangeable Shares are purchased will depend upon future market conditions.

Brookfield Business Partners is a global business services and industrials company focused on owning and operating high-quality businesses that provide essential products and services and benefit from a strong competitive position. Investors have flexibility to invest in our company either through Brookfield Business Partners L.P. (NYSE: BBU; TSX: BBU.UN), a limited partnership, or Brookfield Business Corporation (NYSE, TSX: BBUC), a corporation. For more information, please visit https://bbu.brookfield.com.

Brookfield Business Partners is the flagship listed vehicle of Brookfield Asset Management’s Private Equity Group. Brookfield Asset Management is a leading global alternative asset manager with over $1 trillion of assets under management.

For more information, please contact:

Media: Marie Fuller Tel: +44 207 408 8375 Email: marie.fuller@brookfield.com	Investors: Alan Fleming Tel: +1 (416) 645-2736 Email: alan.fleming@brookfield.com

Cautionary Statement Regarding Forward-Looking Statements and Information

Note: This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of Brookfield Business Partners, as well as regarding recently completed and proposed acquisitions, dispositions, and other transactions, and the outlook for North American and international economies for the current fiscal year and subsequent periods, and include words such as “expects”, “anticipates”, “plans”, “believes”, “estimates”, “seeks”, “intends”, “targets”, “projects”, “forecasts”, “views”, “potential”, “likely” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may”, “will”, “should”, “would” and “could”.

Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, investors and other readers should not place undue reliance on forward-looking statements and information because they involve assumptions, known and unknown risks, uncertainties and other factors, many of which are beyond our control, which may cause the actual results, performance or achievements of Brookfield Business Partners to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: the cyclical nature of our operating businesses and general economic conditions and risks relating to the economy, including unfavorable changes in interest rates, foreign exchange rates, inflation, commodity prices and volatility in the financial markets; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; business competition, including competition for acquisition opportunities; strategic actions including our ability to complete dispositions and achieve the anticipated benefits therefrom; global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; changes to U.S. laws or policies, including changes in U.S. domestic and economic policies as well as foreign trade policies and tariffs; technological change; litigation; cybersecurity incidents; the possible impact of international conflicts, wars and related developments including terrorist acts and cyber terrorism; operational, or business risks that are specific to any of our business services operations, infrastructure services operations or industrials operations; changes in government policy and legislation; catastrophic events, such as earthquakes, hurricanes and pandemics/epidemics; changes in tax law and practice; and other risks and factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States including those set forth in the “Risk Factors” section in our most recently filed Form 20-F.

We caution that the foregoing list of important factors that may affect future results is not exhaustive. When relying on our forward-looking statements and information, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

FAQ

What is the size of Brookfield Business Partners' new buyback program for 2025-2026?

The company is authorized to purchase up to 4,441,425 Units and 3,499,836 Exchangeable Shares, representing 5% of outstanding securities as of August 8, 2025.

When does BBUC's new normal course issuer bid begin and end?

The new buyback program runs from August 19, 2025 to August 18, 2026, unless completed earlier.

How many shares did Brookfield Business Partners purchase under its previous buyback program?

Under the previous program, the company purchased 3,611,689 Units at US$22.54 average price and 2,957,523 Exchangeable Shares at US$25.93 average price.

What are the daily purchase limits for BBUC's buyback program on the TSX?

The daily purchase limits are 10,076 Units and 11,100 Exchangeable Shares, representing 25% of the average daily trading volume.

How will Brookfield Business Partners execute its buyback during blackout periods?

The company has implemented automatic repurchase plans, pre-cleared by the TSX, to allow purchases during internal trading black-out periods.