On Thursday last week, BHP Billiton Limited (BHP) announced its plans to return US$10.4 billion to its shareholders through the combination of an off-market buy-back and a special dividend.
The programme will commence immediately with BHP targeting an off-market buy-back of US$5.2 billion (AUS$7.3 billion) of BHP shares (Off-Market Buy-Back) under which the company can buy back shares at up to a 14% discount. BHP intends to pay the balance of the net proceeds from the sale of its Onshore US assets (expected to be US$5.2 billion) to all shareholders in the form of a special dividend to be determined following completion of the Off-Market Buy-Back, and to be payable in January 2019.
BHP CEO, Andrew Mackenzie, said: "We made a commitment that all the net proceeds from the disposal of our Onshore US assets would be returned to shareholders and we are honouring that commitment now that the sale transactions have been completed. Returning this US$10.4 billion will bring the total cash returned to shareholders to US$21 billion over the last two years.”
BHP Chairman, Ken MacKenzie, said: “Consistent with our capital allocation framework, the Board has carefully considered how best to return the net proceeds to our shareholders. We believe that the off-market buy-back and special dividend programme announced today will return significant value to all our shareholders, allowing the entire BHP global shareholder base to participate, both directly and indirectly, in the shareholder return programme.”
Read the article online at: https://www.globalminingreview.com/finance-business/05112018/bhp-to-undertake-us104-billion-shareholder-return-programme/