BHP backflips on London listing

BHP Billiton confirmed it would seek a London listing for the spin-off of its aluminium and manganese assets.

BHP Billiton confirmed it would seek a London listing for the spin-off of its aluminium and manganese assets, reversing an earlier position in response to investor demand.

The spin-off would hold a standard listing on the London Securities Exchange in addition to the originally planned primary Australian Securities Exchange listing and secondary inward listing on the Johannesburg Stock Exchange, BHP said.

The U-turn followed an outcry from the European investing community, which had seen the decision not to pursue a London listing as a snub to the region. Shares in the London-listed BHP Billiton suffered a significant sell-off in the wake of the announcement, losing almost 5 per cent in the hours following its outline of the divestment plans on August 19.

“We are pleased to offer an additional listing in London in response to the interest investors have shown in the new company,” BHP chief executive Andrew Mackenzie said.

“We continue to work towards completion of the demerger in the first half of the 2015 calendar year, subject to receipt of the necessary approvals.”