Form 4: Director Herkes Reports Share Exchange in Brookfield Business Reorganization

Anne Ruth Herkes, a director of Brookfield Business Corp, reported the exchange of her non-voting limited partnership units and exchangeable shares for new Class A subordinated voting shares as part of a corporate arrangement.

Summary

• Director Anne Ruth Herkes reported changes in beneficial ownership of Brookfield Business Corp (BBU) securities.
• On March 27, 2026, Herkes disposed of 1,106 Non-Voting Limited Partnership Units and 12,581 Class A Exchangeable Subordinate Voting Shares.
• These transactions were part of a court-approved plan of arrangement (the "Arrangement") dated November 6, 2025, under section 288 of the Business Corporations Act (British Columbia).
• Under the Arrangement, holders of BBU Units and BBHC Exchangeable Shares received Class A subordinated voting shares of the newly formed Brookfield Business Corporation (formerly 1559985 B.C. Ltd.) on a one-for-one basis.
• Following the Arrangement, Brookfield Business Partners L.P. (BBU) and Brookfield Business Holdings Corporation (BBHC) became subsidiaries of the new Corporation.
• Herkes now beneficially owns 0 of the previously held BBU Units and BBHC Exchangeable Shares, having exchanged them for shares in the new parent entity.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, primarily reporting a procedural insider transaction resulting from a corporate reorganization rather than indicating operational performance or strategic shifts.

Positives

• The orderly execution of a previously announced and court-approved corporate arrangement demonstrates effective corporate governance and strategic planning.

Negatives

• NA

Risks

• NA

Future Outlook

No specific future outlook or guidance is provided in this Form 4, as it primarily reports a completed insider transaction related to a corporate restructuring.

Management Comments

• The transactions reported represent BBU Units and BBHC Exchangeable Shares transacted pursuant to the Arrangement.

Industry Context

StockSavvy.ai notes that corporate reorganizations, such as plans of arrangement, are common strategies for optimizing corporate structure, enhancing shareholder value, or facilitating strategic objectives within large, complex organizations like Brookfield's various entities. This specific filing reflects the finalization of such a restructuring, consolidating ownership under a new parent entity.

Comparison to Industry Standards

• NA

Corporate Governance

Legal Proceedings

• NA

Related Party Transactions

• The arrangement involved the exchange of securities between Brookfield Business Partners L.P., Brookfield Business Holdings Corporation, and the newly formed Brookfield Business Corporation, all entities within the broader Brookfield ecosystem.

Stakeholder Impact

• Shareholders: Holders of BBU Units and BBHC Exchangeable Shares received shares in the new parent Corporation on a one-for-one basis, maintaining their economic interest in the combined business but under a new corporate structure.
• Company Structure: Brookfield Business Partners L.P. and Brookfield Business Holdings Corporation became subsidiaries of the new Brookfield Business Corporation.

Next Steps

• NA

Key Dates

Recommendation

The Form 4 details an expected share exchange by a director as part of a previously announced and court-approved corporate arrangement. It does not provide new operational or financial data that would alter an investment decision, thus a 'hold' recommendation is appropriate as the underlying business fundamentals remain unchanged by this administrative filing.

Keywords

Brookfield Business Corp, BBU, Form 4, Insider Transaction, Corporate Reorganization, Share Exchange, Arrangement Agreement, Director, Anne Ruth Herkes, Brookfield Business Partners, Brookfield Business Holdings