CIBCBrookfield Business Partners (Outperformer, US$37 Price
Target)
Brookfield Business Partners is scheduled to report earnings on Friday, May 6 prior to
8:00 a.m. ET. A conference call will be held later at 11:00 a.m. ET (1-866-688-9431
code: 8592328).
BBU has been highly active on the acquisition front lately, announcing three transactions
since mid-March: La Trobe (~US$250 million equity investment), Nielsen (~US$600 million)
and CDK Global (~US$500 million). The acquisition of the global lottery services and
technology business of Scientific Games Corporation is also expected to close in Q2/22
(~US$780 million). We estimate that pro forma liquidity stands at US$1.45 billion, including
the preferred share commitment by BAM and assuming all pending acquisitions close. As a
result, we believe there is adequate liquidity to fund all planned investments without
accessing public markets or accelerating plans to recycle capital from existing investments.
However, in the context of a busy period for capital deployment, we suspect that the outlook
for the monetization pipeline will remain a central focus for investors. In the interim,
operational updates from the larger portfolio companies will influence how the units trade.