What happened

Shares of Brookfield Renewable Partners (BEP -1.01%) (BEPC -0.35%) dropped 5% at the open today, and remained down more than 4% as of 11:00 a.m. EDT. One of the world's largest investors in renewable energy had a busy news day on Monday. 

So what

The company, and its parent Brookfield Asset Management (BN -2.38%), yesterday announced a shuffling of executives, naming a new CEO and vice chairman for Brookfield Renewable. 

renewable energy including solar panels, wind turbines and hydroelectric dam

Image source: Getty Images.

After the market closed, the company announced a secondary stock offering valued at about $245 million of exchangeable shares of Brookfield Renewable Corporation (BEPC). 

The secondary offering of slightly over 4 million shares will be sold at a price of approximately $60 per share, compared with Monday's closing price of $64. 

Now what

The shares are being sold by a subsidiary of Brookfield Asset Management (BAM), and Brookfield Renewable will not be receiving any proceeds from the offering. BAM currently owns a 52% equity stake in Brookfield Renewable. After the sale of its shares, BAM's ownership stake will be approximately 51%. 

Investors today are reacting to the simple math of the transaction's share price. But Brookfield Renewable shareholders are not being diluted by this share exchange, since the shares being sold were owned by BAM, a separate entity. 

Monday's earlier news would seem to be more important to current shareholders. The executive moves were made in order to drive growth in Brookfield Renewable, which should bode well for long-term shareholders.