BHP plans $US10.4bn capital return
BHP shares jumped after it said it will return $US10.4bn to shareholders via a stock buyback and special dividend.
BHP Billiton, the world’s biggest mining company by market value, said it would return US10.4 billion ($14.7bn) to shareholders via a stock buyback and special dividend after completing the sale of its US onshore oil and natural gas assets.
The announcement lifted BHP shares as much as 6.2 per cent in early trade to a three-week high of $34.20 but the bounce faded into the close with the miner’s shares ending the session up 90 cents, or 2.79 per cent, at $33.11.
BHP, which has faced pressure from activist investor Elliott Management Corp to improve returns, said the move would bring the total cash handed back to shareholders over the past two years to $US21 billion.
The Melbourne-based company (BHP) said it planned to buy back shares worth $US5.2 billion and pay a special dividend to shareholders totalling $US5.2 billion. It said the capital-management program would begin immediately.
BHP yesterday completed the sale of the bulk of its US oil and gas unit to BP, ending a costly saga that left the company roughly $US20 billion worse off.
“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,” said BHP chief executive Andrew Mackenzie.
Dow Jones Newswires