The Strategist

BHP Billiton finishes buyback for $ 5.2 bln

12/17/2018 - 14:34

Anglo-Australian mining giant BHP Billiton Ltd announced completion of a $ 5.2 billion OTC repurchase of shares.

On November 1, 2018, the company announced plans to return $ 10.4 billion to its shareholders via buy back and pay special dividends.

As a result, the mining giant bought out about $ 265.8 million shares (8.3% of the share capital of BHP Group Limited) for $ 5.2 billion. The buyback price was AUD 27.64 per share, or 14% less than the market value (AUD 32.1387 per share).

BHP also decided to pay special dividends on January 30, 2019 in the amount of $ 1.02 per share, or in the amount of $ 5.2 billion. The dividends will be paid as part of income from sale of the company's assets in the United States.

As reported earlier, BHP Billiton, the world's largest mining company, announced in August 2017 that it would exit its American business, which was showing weak results. BHP made this decision under pressure from Elliott Management hedge fund, which owns shares in the company.

In May-June 2018, BHP Billiton Ltd was offered to buy the assets as part of its plans to exit the shale oil and gas production business in the United States. The deal was planned to be completed around the end of 2018 or in 2019.

The company's division in Houston, BHP Petroleum, has about 3,391 sq. km of land in the Haynesville and Fayetteville formations in Arkansas, and in the Permian basin and the Eagle Ford field in Texas.