Tuesday, August 14, 2018

Brookfield Business Partners Update - Westinhouse Purchase & Graftech Monetization

Brookfield Business Partners (BBU) Closes Westinhouse Purchase which Equity Investment of $420M. This investment over the next 3-5 years has the potential to be a 5 to 10 bagger if Brookfield can expand the service offering and add enhance customer service  and broaden the portfolio with synergistic acquisitions.

BBU has started monetizing the Graftech investment which has been a 10 bagger so far worth a total of $2.7B so far. Prospects are good to monetize the North American Palladium investment as well over the next 1-3 years.

Company continues to progress the business plan at BRK Ambiental, Greenergy, Canadian Gaming and Gas Station Assets, Teekay Offshore etc. The Construction Services business Multiplex has been disappointing and will likely take 1-2 years more to turnaround and get to stage of providing dividends to BBU.

Target price for BBU is $50 by 2019 end and the growth prospects are very strong over next 5 years.

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