The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

Brookfield Renewable Power Fund Defers Conversion to Corporation

Thursday, October 21, 2010

Brookfield Renewable Power Fund Defers Conversion to Corporation17:10 EDT Thursday, October 21, 2010GATINEAU, QC, Oct. 21 /CNW Telbec/ - (BRC.UN) - The Board of Trustees of Brookfield Renewable Power Fund (the "Fund"), have decided to defer the Fund's conversion to a corporation as the Board believes it is in the best interests of the Fund and its unitholders to further consider the optimal structure of the conversion and to analyze other emerging alternatives available to the Fund. The Fund had previously provided details regarding its plan to convert from an income trust to a corporation in light of the tax changes to income trusts that become applicable on January 1, 2011. The conversion was expected to become effective on November 30, 2010.In making its decision, the Fund considered that it will not be taxable in 2011 and therefore cash available for distributions will be unaffected by the decision to defer the conversion; that the ability of the Fund to issue equity as required for growth opportunities would be similarly unaffected; and that the conversion rules afforded to SIFT entities will continue to be available to the Fund in 2011.The Fund expects to provide clarity on its future plans by early 2011, with the goal of recommending a structure that will best support its future growth while providing all the benefits of conversion previously outlined.As previously indicated, the Fund intends to continue to pay monthly distributions at the current rate through the first quarter of 2011 and on a quarterly basis thereafter. Beginning in 2011, distributions from the Fund received by unitholders will generally be taxed as dividends from a taxable Canadian corporation. The deemed dividends will be treated as an "eligible dividend" if paid to a resident of Canada.The special meeting of Fund unitholders originally scheduled for November 24, 2010, will be cancelled and rescheduled when there is a new proposal for unitholders to consider.CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATIONThis news release contains forward-looking statements and information within the meaning of the Canadian securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact.  Forward-looking statements in this news release include statements regarding the Fund's conversion, its distribution expectations, its access to the equity markets, and the anticipated timing and benefits of a conversion transaction. Forward-looking statements can be identified by the use of words such as "believes", "will", "expects", "intends", and "continue", or variations of such words and phrases.  Although the Fund believes that the Fund's anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, it can give no assurance that such expectations will prove to have been correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to differ materially from anticipated future results, performance or achievement 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 board's discretion to declare dividends, changes in hydrology and wind conditions; equipment failure; failure by counterparties to fulfill contractual obligations and failure by the Fund to replace contracts; the Fund's dependence on Brookfield Renewable Power Inc. and potential conflicts of interest between Brookfield Renewable Power Inc., Brookfield Asset Management Inc. and the Fund; failure by the Fund to discover liabilities associated with, and inability of the Fund to successfully integrate, acquisitions; risks associated with the Fund's proposed conversion to a corporation; our ability to execute our growth strategy; and other risks and factors detailed from time to time in the Fund's public filings including the Annual Information Form dated March 26, 2010 under the heading "Risk Factors" and Management's Discussion and Analysis of Financial Results under the headings "Financial Instrument Risks", "Risk Factors" and "Business Environment and Risks". We caution that the foregoing list of important factors that may affect future results is not exhaustive. Except as required by law, the Fund undertakes 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.About Brookfield Renewable Power Fund Brookfield Renewable Power Fund ( is a premier Canadian income fund and one of the largest power income funds in North America with more than 1,700 megawatts of power generating capacity and average annual production exceeding 6,500 gigawatt hours.The Fund produces electricity exclusively from environmentally friendly and renewable resources. The Fund indirectly owns or holds interests in 42 high quality hydroelectric generating stations and two wind farms in four distinct geographic regions across North America: Québec, Ontario, British Columbia and New England.Brookfield Renewable Power Inc., which comprises all of the power operations of Brookfield Asset Management, owns approximately 42% of the Fund's outstanding units on a fully exchanged basis.The Units are listed for trading on the TSX under the symbol BRC.UN.%SEDAR: 00013106EFFor further information: For more information, please visitwww.brpfund.comor contact:Zev Korman Director, Investor Relations and Communications Brookfield Renewable Power Fund Tel: (416) 359-1955