Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 125

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 5
Chunk 125
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 with the impact of foreign exchange movements within our operations.

Equity attributable to Unitholders

As at December 31, 2024, our capital structure comprised two classes of partnership units: LP Units and GP Units. LP Units entitle the holder to their proportionate share of distributions. GP Units entitle the holder the right to govern our financial and operating policies. See Item 10. B, “ Memorandum and Articles of Association - Description of our Units and our Limited Partnership Agreement”.

The Holding LP’s capital structure comprised three classes of partnership units: managing general partner units held by our company, Special LP Units and Redemption-Exchange Units held by Brookfield Holders. In its capacity as the holder of the Special LP Units of the Holding LP, the special limited partner is entitled to receive incentive distributions based on 20% of the growth in the market value of the Units quarter-over-quarter, but only after the market value exceeds the Incentive Distribution Threshold.

In order to account for the dilutive effect of the special distribution which occurred on March 15, 2022, the incentive distribution threshold was reduced by one-third, commensurate with the distribution ratio of one (1) BBUC exchangeable share for every two (2) LP Units. Accordingly, the resulting incentive distribution threshold was adjusted to $31.53 per LP Unit following the completion of the special distribution. The incentive distribution threshold as at December 31, 2024 was $31.53 per LP Unit. See Item 10. B, “ Memorandum and Articles of Association - Description of the Holding LP Limited Partnership Agreement”.

During the year ended December 31, 2024, the total incentive distribution was $nil (2023: $nil).

BBUC’s capital structure comprised BBUC exchangeable shares held by Brookfield Holders and public shareholders. Each BBUC exchangeable share has been structured with the intention of providing an economic return equivalent to one LP Unit, and BBUC targets to pay identical dividends on a per share basis to the distributions paid on each LP Unit. Each BBUC exchangeable share is exchangeable, at the BBUC shareholder’s option, for one LP Unit (subject to adjustment to reflect certain capital events) or its cash equivalent. During the year ended December 31, 2024, 4 BBUC exchangeable shares were exchanged into LP Units.

  Brookfield Business Partners      83  

On August 15, 2024, the TSX accepted a notice filed by the partnership of its intention