BHP completes $6b buy-back
Resource giant BHP Billiton (ASX: BHP) says it has successfully completed of its off-market tender buy-back of its shares. The final transaction size of A$6 billion (US$6.3 billion) has enabled BHP to buy back 147 million shares, which represents 4.4 per cent of its issued share capital.
The final price for the off-market buy-back has been set at A$40.85 per share, which represents a discount of 14 per cent to the market price of A$47.4985 per share. The final price has allowed BHP to purchase a significant amount of BHP shares at a material discount to the market price.
BHP said the off-market buy-back is expected to have a positive impact on its earnings per share, cash flow per share and return on equity and is expected to benefit all company shareholders regardless of location, tax status or participation in the off-market buy-back.
BHP Billiton Group Executive and Chief Financial Officer, Alex Vanselow, said "We are pleased to have successfully completed this transaction, which returns capital to participating investors in an expeditious manner while maximising economic value for all our shareholders.
BHP has now repurchased US$7.8 billion worth of BHP Billiton Ltd and BHP Billiton Plc shares under the capital management program that was reactivated on 16 November 2010 and expanded to US$10 billion on 16 February 2011.
The top miner said it expects that the US$2.2 billion remaining on this program will be completed through further share buy-backs by the end of the 2011 calendar year subject to market conditions, .
Payments to bank accounts and dispatch of cheques for shares bought back are expected to be completed on Monday, 18 April 2011. Shares that have been tendered into the off-market buy-back but not bought back are expected to be released to shareholders during Monday, 11 April 2011.