BNN Investments Ltd.

BNN Investments Ltd.

June 05, 2006 19:30 ET

BNN Investments Ltd.: News Release

TORONTO, ONTARIO--(CCNMatthews - June 5, 2006) - BNN Investments Ltd. (TSX:BNB) announced that it has agreed to purchase 10.9 million Class A Limited Voting Shares of Brookfield Asset Management Inc. ("Brookfield") from Partners Ltd. ("Partners") in exchange for the issuance to Partners of 2,507,973 common shares of the company and a $72 million promissory note.

Following the transaction, BNN Investments' ownership interest in Brookfield will be 37.0 million Class A Shares, representing a 9.6% equity interest in Brookfield. The transaction, which is consistent with the company's mandate, will increase BNN Investments' asset base and cash flows, thereby strengthening its financial position and increasing its financial flexibility.

Partners currently owns 1,363,293 common shares of BNN Investments, representing a 25% ownership interest, and following the transaction will own 3,871,266 common shares of BNN Investments representing a 49% interest. Partners will also continue to own 100% of the Class B Limited Voting Shares of Brookfield.

Partners and BNN Investments hold these share interests for investment purposes.

The transaction will be presented to shareholders of BNN Investments for approval at a meeting to be held on June 30, 2006. The transaction has been reviewed by a Special Committee of the Board of BNN Investments Ltd. and the Board, upon the recommendation of the Special Committee, unanimously recommends that all shareholders vote in favour of the transaction.

BNN Investments' is a TSX listed company whose principal objective is to provide shareholders with a leveraged investment in common shares of Brookfield.

Note: This news release contains "forward-looking statements". The words "believe", "expect", "anticipate", "intend", "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's continuous disclosure documents. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • BNN Investments Ltd.
    Brian D. Lawson
    President and Chief Executive Officer
    (416) 359-8620