Brookfield Corporation Announces Renewal of Normal Course Issuer Bid

Rhea-AI Summary

Brookfield Corporation (NYSE: BN, TSX: BN) has received TSX approval to renew its normal course issuer bid to purchase up to 143,027,158 Class A Limited Voting Shares, representing 10% of its public float. The buyback program will run from May 27, 2025 to May 26, 2026 through TSX, NYSE, and alternative trading systems.

Under its previous buyback program, Brookfield purchased 22,200,979 Class A Shares at a weighted average price of US$51.20. The company believes its share price may not fully reflect its underlying value and future prospects, making the buyback an attractive investment opportunity. The maximum daily purchase limit on TSX will be 456,420 shares.

Brookfield plans to implement an automatic share purchase plan around June 16, 2025, allowing share repurchases during blackout periods.

Positive

• Authorization to repurchase up to 143 million shares (10% of public float) demonstrates strong commitment to shareholder value
• Company has already executed significant buybacks under previous program, purchasing 22.2 million shares at $51.20
• Implementation of automatic share purchase plan enables consistent execution of buybacks
• Strong cash position allows for share repurchases while maintaining operations

Negative

• Large share repurchases may reduce market liquidity
• Use of cash for buybacks could limit funds available for business investments or acquisitions

Insights

Financial Markets Analyst

Brookfield's 10% share buyback authorization signals management confidence and could provide price support while enhancing shareholder returns.

Brookfield Corporation's renewal of its normal course issuer bid represents a significant capital allocation decision. The company has received approval to repurchase up to 143,027,158 Class A shares, constituting 10% of its public float. This authorization runs from May 27, 2025, to May 26, 2026.

Looking at their execution of the previous buyback program, Brookfield has been relatively conservative in its approach. Under the prior authorization for approximately 143 million shares, the company repurchased only 15.5% of the authorized amount (22,200,979 shares) at a weighted average price of $51.20 per share, suggesting disciplined capital deployment based on perceived valuation opportunities.

The stated rationale behind this program is management's belief that the market price sometimes doesn't fully reflect the underlying value of Brookfield's business and future prospects. This signals management confidence in the company's intrinsic value and future outlook.

The planned automatic share purchase plan will allow repurchases during blackout periods, providing consistent buying support throughout the year. All repurchased shares will be cancelled or used for long-term incentive plans, directly benefiting remaining shareholders through increased ownership percentages and potential EPS growth.

While share repurchases represent just one aspect of Brookfield's capital allocation strategy, this renewed authorization indicates the board's commitment to returning capital to shareholders when they believe shares are undervalued, potentially providing price support while enhancing long-term shareholder returns.

BROOKFIELD, NEWS, May 23, 2025 (GLOBE NEWSWIRE) -- Brookfield Corporation (“Brookfield”) (NYSE: BN, TSX: BN) today announced it has received approval from the Toronto Stock Exchange (“TSX”) for the renewal of its normal course issuer bid to purchase up to 143,027,158 Class A Limited Voting Shares (“Class A Shares”), representing 10% of the public float of Brookfield’s outstanding Class A Shares. Purchases under the bid will be made on the open market through the facilities of the TSX, the New York Stock Exchange (“NYSE”), and/or alternative trading systems. The period of the normal course issuer bid will extend from May 27, 2025 to May 26, 2026, or an earlier date should Brookfield complete its purchases. Brookfield will pay the market price at the time of acquisition for any Class A Shares purchased or such other price as may be permitted.

As at May 15, 2025, the number of Class A Shares issued and outstanding totaled 1,647,846,059 of which 1,430,271,580 shares represented the public float. In accordance with the rules of the TSX, the maximum daily purchase on the TSX under this bid will be 456,420 Class A Shares, which is 25% of 1,825,680 (the average daily trading volume for Class A Shares on the TSX for the six months ended April 30, 2025).

Of the 142,988,844 Class A Shares approved for purchase under Brookfield’s prior normal course issuer bid that commenced on May 27, 2024 and will expire on May 26, 2025, Brookfield purchased 22,200,979 Class A Shares as of May 15, 2025; 2,835,555 Class A Shares through open market purchases on the TSX and 19,365,424 Class A Shares through open market purchases on the NYSE. The weighted average price that Brookfield paid per Class A Share acquired under this bid was US$51.20.

Brookfield is renewing its normal course issuer bid because it believes that, from time to time, the market price of its Class A Shares may not fully reflect the underlying value of its business and its future business prospects. Brookfield believes that, in such circumstances, the outstanding Class A Shares represent an attractive investment for Brookfield, since a portion of its excess cash generated on an annual basis can be invested for an attractive risk adjusted return through the issuer bid. All Class A Shares acquired by Brookfield under this bid will be cancelled and/or purchased by a non-independent trustee pursuant to the terms of Brookfield’s long-term incentive plans.

Brookfield intends to enter into an automatic share purchase plan on or about the week of June 16, 2025 in relation to the normal course issuer bid. The automatic share purchase plan will allow for the purchase of Class A Shares, subject to certain trading parameters, at times when Brookfield ordinarily would not be active in the market due to its own internal trading black-out period, insider trading rules or otherwise. Outside of these periods, Class A Shares will be repurchased in accordance with management’s discretion and in compliance with applicable law.

About Brookfield Corporation

Brookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Alternative Asset Management, Wealth Solutions, and our Operating Businesses which are in renewable power, infrastructure, business and industrial services, and real estate.

We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN).

Please note that Brookfield Corporation’s previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR+ and can also be found in the investor section of its website at www.brookfield.com. Hard copies of the annual and quarterly reports can be obtained free of charge upon request.

For more information, please visit our website at www.bn.brookfield.com or contact:                           

Media:	Investor Relations:
Kerrie McHugh	Katie Battaglia
Tel: (212) 618-3469	Tel: (416) 359-8544
Email: kerrie.mchugh@brookfield.com	Email: katie.battaglia@brookfield.com

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of Canadian provincial securities laws and “forward-looking statements” within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, “forward-looking statements”). Forward- looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management’s current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which in turn are based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield Corporation are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as “expect,” “anticipate,” “believe,” “foresee,” “could,” “estimate,” “goal,” “intend,” “plan,” “seek,” “strive,” “will,” “may” and “should” and similar expressions. In particular, the forward-looking statements contained in this news release include statements referring to the impact of current market or economic conditions on our business, the future state of the economy or the securities market, the anticipated allocation and deployment of our capital, our fundraising targets, and our target growth objectives.

Although Brookfield Corporation believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments including asset management, wealth solutions, renewable power and transition, infrastructure, private equity, real estate and corporate activities; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States.

We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release or such other date specified herein. Except as required by law, Brookfield Corporation undertakes no obligation to publicly update or revise any forward- looking statements, whether written or oral, that may be as a result of new information, future events or otherwise.

FAQ

How many shares can Brookfield (BN) repurchase under its new buyback program?

Brookfield can repurchase up to 143,027,158 Class A Limited Voting Shares, representing 10% of its public float.

What is the duration of Brookfield's (BN) new share buyback program?

The buyback program runs from May 27, 2025 to May 26, 2026, unless completed earlier.

How many shares did Brookfield (BN) purchase under its previous buyback program?

Under the previous program, Brookfield purchased 22,200,979 Class A Shares at a weighted average price of US$51.20.

What is the maximum daily purchase limit for Brookfield (BN) shares on the TSX?

The maximum daily purchase limit on the TSX is 456,420 Class A Shares, which is 25% of the average daily trading volume.

When will Brookfield (BN) implement its automatic share purchase plan?

Brookfield plans to implement the automatic share purchase plan around the week of June 16, 2025.