Rio de Janeiro, September 11, 2007 – Brascan Brasil, a subsidiary of Brookfield Asset Management Inc. (NYSE/TSX: BAM) (“Brookfield”), today announced that it has acquired from The Bank of New York Mellon Corporation, their 40% interest in Banco Brascan, a Brazilian investment bank with offices in São Paulo and Rio de Janeiro. This transaction brings to an end a successful decade long partnership. Brascan Brasil now owns 100% of Banco Brascan.
Luiz I. Simões Lopes, Managing Partner of Brookfield, stated that “we are very excited about this acquisition. It strengthens our operating platform, furthers our asset management strategy and positions us well in this region at a time when Brazil’s economic growth is expected to be substantial as interest rates decline, foreign investment increases, and the country attains investment grade status. Acquiring this minority interest will enable us align Banco Brascan’s activities more closely with ours”.
Brookfield also announced today that Luiz I. Simões Lopes, President and CEO of Banco Brascan, has been appointed President and CEO of Brascan Brasil with overall responsibility for Brookfield’s activities in Brazil after the closing of the transaction. George Myhal, Managing Partner and Chief Operating Officer of Brookfield, stated that “Luiz has over 30 years of capital markets experience in Brazil working with Banco Brascan, and other multinational corporations. Luiz’ experience and leadership will be invaluable as we grow our Brazilian asset management platform”.
About Banco Brascan
Banco Brascan is an investment bank with over 100 people working out of offices in São Paulo and Rio de Janeiro. It provides mergers and acquisitions advisory services, underwriting, commercial lending, brokerage, and asset management services to Brazilian and international clients. More information can be found at www.bancobrascan.com.br.
Investment in Brazil
With more than 100 years of history in Brazil, Brascan is one of the longest standing international companies operating in the country. Over the past decade, with the improvement in Brazil’s economic fundamentals, Brascan has increased its investments in the country and currently has over R$4 billion of assets under management in Brazil.
Last year, Brascan took its Brazilian homebuilding business public in Brazil in one of the largest IPO’s ever completed in that country and also closed a US$800 million fund dedicated to investment in retail shopping centres. Brascan also has a growing portfolio of agricultural land in the interior of the country and timber holdings. In the power business, Brascan owns a large and rapidly growing portfolio of hydro generating plants and an interest in a transmission system. In addition to expanding these investments, Brascan is also seeking to identify attractive infrastructure investment opportunities.
Media
Luiz Lopes
President and CEO, Banco Brascan
Tel: (5521) 3231 3104
Email: lislopes@bancobracan.com.br
Note: This press release contains forward-looking information and other “forward-looking statements” within the meaning of certain securities laws including Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in applicable Canadian securities regulations. We may make such statements in this release, in other filings with Canadian regulators or the SEC or in other communications. These forward-looking statements include among others, statements with respect to general economic conditions in Brazil and the growth prospects of Banco Brascan and Brookfield in Brazil and other statements with respect to our beliefs, outlooks, plans, expectations, and intentions for this business.
The word “expected” and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking statements. Although Brookfield Asset Management believes that the anticipated future results of its activities in Brazil, including the performance or achievements of Banco Brascan expressed or implied by the forward-looking statements and information, are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company 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: economic and financial conditions in Brazil; the behavior of financial markets including fluctuations in interest and exchange rates; liquidity of domestic capital and lending markets; tax policies and other political, social and economic developments in or affecting Brazil; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments including terrorist acts; and other risks and factors detailed from time to time Brookfield’s form 40-F filed with the Securities and Exchange Commission and other documents filed by the company with the securities regulators in Canada and the United States including in the Annual Information Form under the heading “Business Environment and Risks”.
We caution that the forgoing list of important factors that may affect future results is not exhaustive. When relying on our forward looking statements to make decisions with respect to Brookfield Asset Management, investors and others should carefully consider the forgoing factors and other uncertainties and potential events. The company 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.
