BHP plans to spinoff a group of assets into an independent global metals and mining company which would be listed on the ASX sometime mid 2015.
The new company will be headquartered in Perth, will be headed by current BHP chief financial officer Graham Kerr who will become the CEO, and would have had an average annual earning of about $3.3 billion over the last ten eyars.
The company will have 24,000 staff and contractors globally.
Assets selected for the new company include BHP’s aluminium and manganese businesses and the Cerro Matoso Nickel, Energy Coal South Africa, Illawarra Metallurgical Coal and
Cannington Silver-Lead-Zinc mines.
Together they would form a company with assets in five countries and a dedicated board, management team, corporate structure and strategy specifically designed to enhance their performance.
The portfolio is cash flow positive today.
Here’s where the assets sit geographically:
Shareholders would be entitled to 100% of the shares in the new company through a pro-rata distribution.
BHP CEO Andrew Mackenzie says the assets in the new company are among the largest and highest quality in their sectors.
“We believe they will be more valuable in a purpose built, independent company than they would be in BHP Billiton,” he says.
“With experienced management and a strategy and cost structure tailored to the scale of its businesses, the demerged company would be well placed to create substantial additional value for shareholders and rewarding careers for employees.”
The chairman of the new company will be David Crawford who will retire from the BHP Billiton Board in November 2014 after nearly 20 years.
More details of the proposal will be released in November.
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