BHP shareholders are getting a $14.7 billion present

BHPImage: Screenshot from BHP’s TV campaign.
  • BHP announces a $US10.4 billion ($AU14.7 billion) shareholder return program.
  • The return will be via an off-market buy-back and a special dividend.
  • BHP will use the net proceeds from the sale of its onshore US assets, expected to be $US5.2 billion ($AU7.3 billion).

BHP plans to return $US10.4 billion ($AU14.7 billion) to its shareholders through an off-market buy-back and a special dividend.

The miner will target an off-market buy-back of $US5.2 billion ($AU7.3 billion) of BHP Billiton Limited shares at up to a 14% discount.

BHP intends to pay the net proceeds from the sale of its onshore US assets, expected to be $US5.2 billionc ($AU7.3 billion), in the form of a special dividend.

In early trade, BHP shares were up more than 4% higher at $33.60.

“We made a commitment that all the net proceeds from the disposal of our Onshore US assets would be returned to shareholders,” says BHP Chief Executive Officer, Andrew Mackenzie.

This will bring the total cash returned to shareholders to $US21 billion ($AU30 billion) over the last two years.

BHP Chairman Ken MacKenzie says the board carefully considered how best to return net proceeds to shareholders.

“We believe that the off-market buy-back and special dividend program 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 program,” he says.

BHP also announced the completed the sale of its interests in the Eagle Ford, Haynesville and Permian Onshore US oil and gas assets to BP America Production Company for a $US10.5 billion.

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