BEP announced that they will distribute 1 BEPC share for each 4 BEP shares.
Brookfield Renewable also intends to complete the previously announced special distribution of shares of Brookfield Renewable Corporation on July 30. From an economic and accounting perspective, the special distribution will be analogous to a unit split as it does not result in any underlying change to aggregate cash flows or net asset value except for the adjustment for the aggregate number of units/shares outstanding.
Each BEP unitholder of record as of July 27 will receive one (1) class A exchangeable subordinate voting share of BEPC for every four (4) BEP units held. The shares will commence regular-way trading on the Toronto Stock Exchange and the New York Stock Exchange under the symbol “BEPC” on July 30.
How will this be reflected to us? Will we get BEPC shares, BEP shares, or the equivalent money?
It would be great if we can get the corresponding BEPC shares.
@eu42 As of this moment, the only way we can react on such events is to distribute the proceeds as cash equivalents. Once the BEPC shares are given to us, we will sell them and distribute the funds to the eligible accounts.
Hey Peter, can you please clarify this point better?
Will we need to rebuy the shares or they will be distributed to current holders?
What about the fractional parts?
yeah, ditto. someone help me with the math behind this please? while i understand Peter’s point, i would love to see the details behind this especially given they are following an unconventional route and distributing cash (instead of the shares we are entitled).
Yesterday, BEP performed a spin-off with a ratio 4:1, meaning that for every 4 shares you are going to receive 1 share from the new security (BEPC). However, at this point, we aren’t able to provide you with the new 1 share, so we distribute the cash equivalent instead.
Example 1: If you were holding 4 shares on 29.07.2020, you are eligible for 1 new share of (BEPC). The mentioned share is worth around 40-41$ USD (as of 30.07.2020), so you’re going to receive a payment of 40-41 USD, which can be noticed in the dividends tab or your notifications.
Example 2: If you were holding 5 shares on 29.07.2020, you are eligible for 1.25 new shares of (BEPC). As I mentioned, the share is worth around 40-41$ USD (as of 30.07.2020), so you’re going to receive 1.25 x 40 = 50 USD cash payment.
Cash compensations might seem confusing, that’s why we’re working on share-based proceeds.
@H2T2 At this moment, we can’t provide you with an ETA. As to your second question - we’re selling the shares & distributing their value based on the sell price.
why not just allocate those shares to us as some people mention above as opposed to selling them then? surely it would save you the hassle of selling it.
not trying to be a pain, just trying to understand the process and if it can be done better.
@H2T2 Yes - that would be the better path for execution. Unfortunately, it requires some technicalities, which are yet to be built, to allow such corporate events to be handled seamlessly. We hope that we will be able to provide it soon.
i know this probably has been mentioned a few times throughout different forums, but i’d highly recommend a section or pinned post to let us know what you guys are working on. it will only serve to keep people informed of what’s being worked on in order of priority and will allow your team to gauge interest in those features in case you’ve got your priorities misaligned. i know there are people who’ll take a look at that and always whine about timelines and how you can’t do all that with a snap of your finger, but i’d say the long terms benefits will outweigh all of that.
Afaik BEP/BIP and BEPC/BIPC are going on same as BPY/BPYU, separate legal entity to avoid hassle with K-1 tax report in USA. One being LP and other being Corp. Thus ordinary dividend paid by BIPC/BEPC/BPYU while BIP/BEP/BPY provide return of capital type distribution.
