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Brookfield Corporation Class A Limited Voting Shares (BN)
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Brookfield Reinsurance Ltd. Class A Exchangeable Limited Voting Shares (BNRE)
Q: I have 400 BN with an ave cost of $39.24 and current price $42.16
I also have 2 BNRE-ave cost $56.18 and current price $42.56
What happens if I transfer the 2 BNRE into BN with the different average cost and current prices?
Would it be better to keep them separated?
thanks,
Paul
I also have 2 BNRE-ave cost $56.18 and current price $42.56
What happens if I transfer the 2 BNRE into BN with the different average cost and current prices?
Would it be better to keep them separated?
thanks,
Paul
5i Research Answer:
BNRE continues to trade at a small premium to BN, so converting would result in small loss of value. The adjusted book cost per share would be the combined total cost of all shares, divided by 402 shares (the new number of BN shares after the exchange). ACB would rise marginally because the cost base of BNRE is higher. With only a small premium, this becomes a personal choice: cleaning up the portfolio and exchanging shares will result in a tiny loss of value only and we would not object if one wanted to have a fewer number of total positions.