BPY default option and tax treatment

To receive the Cash Consideration as to 50.4678% of such Deposited BPY Units, the BAM Share Consideration as to 41.8104% of such Deposited BPY Units and the New LP Preferred Unit Consideration as to 7.7218% of such Deposited BPY Units (the "Default Consideration") pursuant to the Plan of Arrangement in respect of all BPY Units deposited by such BPY Unitholder.

Ultimate12 wrote: ↑ Did you guys get a letter to choose option? I didn’t receive anything. How to choose option? I want to choose convert to BAM shares.

pistilogo wrote: ↑ The shares are in my TFSA so I assume I can do the no rollover option? =/
(I want as many BAM shares as possible)

HammerRFDer wrote: ↑ My broker TD has a big PDF under corporate action notices, but I need to call them with my choice.

Currency Disclaimer: If the payment is denominated in a currency other than that specified by your account at the time instructions are given, we will convert the payment at our then prevailing exchange rate and credit you in the currency of that account. We and/or parties related to us may earn revenue from such transactions.

nice4 wrote: ↑ Confused...I have no US account (don't like to have one with this account) and if I opt for convert my PPY.UN, I will have BAM share in US and some cash in US or in CAD ? ... Let say 100 shares of BPY.UN on hand now
1) Cash option, how much will be by default ? in US or in CAD ?
2) Roll over, How many BAM and how cash ? in US or in CAD ?
Someone please helps...
As of today July 9th, BPY.UN share is $23.65 ... how much diff as if I dump the share today vs as option 1) above

Ultimate12 wrote: ↑ I read about the options but didn’t understand completely. I want to convert to BAM shares so my understanding is I should choose ‘option 3’. I am not sure what is the difference between option 3 (roll over) & 4 (no roll over). I guess roll over probably means converted as it is, so no tax consequences. I hold the shares in CAD RRSP so I guess tax does not matter to me and should choose option 3. Is this correct? Do I have to fill any other tax document later as mentioned in one of the post above even if I have shares in RRSP account.

I understand not all shares will be converted to BAM and they may ‘pro-ration’. What will happen to shares which are not converted. Do we have option to take cash or they will do whatever they want on pro-ration basis. By the way just noticed that now you will get 0.4006 share of BAM per BPY instead of 0.3979.

• 100% cash election: $18.17 in cash.
• 100% BAM shares election: approximately $7.69 in cash, 0.2185 BAM shares and 0.0230 BPY preferred units.
• 100% BPY preferred units election: 0.7268 BPY preferred units.

doobievibes wrote: ↑ I always think I am a bit of an expert at all this stuff, so my ego never lets me ask for help on this forum.

But this time I'm humbly asking someone to clarify this for me.

So, looks like the "Results of Unitholder Elections in Privatization Transaction" are in:

https://www.globenewswire.com/news-rele ... ction.html

And this is what is going to happen based on what you elected.

• 100% cash election: $18.17 in cash.
• 100% BAM shares election: approximately $7.69 in cash, 0.2185 BAM shares and 0.0230 BPY preferred units.
• 100% BPY preferred units election: 0.7268 BPY preferred units.

Here are my questions:

What are the "BPY preferred units"?
How much are they worth? (Is it $25.00? "a BPY preferred unit with a liquidation preference of $25.00 per unit (“BPY preferred units”).")
How do I sell them? Will it be traded on the exchange?

Today BAM closed at 50.69, BPY closed at 18.59

So If you elected to get BAM shares, is this right?

BAM.............50.69 x 0.2185 = .......11.08
Cash..............................................7.69
BPY(Pref)......25.00 x 0.0230=..........0.58
Intrinsic worth of a BPY share?........19.36
(not sure if I used the word "intrinsic" properly)

So that seems like a pretty good deal as BPY is trading at 18.59, is that right?

And it seems the $18.17 is a crappy deal, if you elected that.

And 25.00 x 0.7268 = 18.17 is also a crappy deal if you elected that.

Is there something I am missing?

And am I locked into this now?
It looks like I can still sell or buy BPY units. Is there a sorta "ex-divdend" date?

Thanks

HammerRFDer wrote: ↑ It's Brookfield, none of it makes any sense. Good luck reading the 321 page info document. There are also 9 other documents "incorporated by reference".

1. Default option:



IE: a mix of half cash, slightly less than half of BAM and an annoyingly small amount of new BPY Preferred units they will create.

2. There are 7 options. 1 of which is a rollover for BAM, another is a non-rollover for BAM. If you want to rollover, beyond choosing the option about it, there will be an additional tax document you have to fill out and send to CRA, a Joint Tax Election (once this is all over, it will be here: https://bpy.brookfield.com/stock-and-di ... nformation but right now just tells you 'check back later', as this transaction isn't even certain yet). BBBBBBUUUUUUUUTTTTTTTTT there's a limit to how many BPY units they'll allow everyone to change into BAM, so it's likely there will be pro-ration. ie: even if you choose BAM shares, you'll get a mix of BAM and cash anyway.

I'm not your lawyer/tax advisor, just what I got out of skimming this dinosaur.

You will likely have to call your broker with your selection. Don't expect a voting slip in the mail.