BHP Billiton Plans Shareholder Vote On Proposed Spin-off In May 2015

(RTTNews) - Mining giant BHP Billiton Ltd. (BHP, BHP.AX, BBL, BLT.L) announced Thursday that it intends to hold a extraordinary general meeting for shareholder vote in May 2015 on its proposed spin off of its less profitable assets such as aluminium, coal, manganese and silver assets, into a separate public-listed company.

The company's Chairman Jac Nasser revealed this while addressing shareholders during a presentation at the company's Annual General Meeting in Adelaide earlier in the day. Nasser said the spin-off will benefit other areas of its global operations.

BHP noted that regulatory approvals for the proposed multi-billion dollar spin-off have already been received from the Australian Foreign Investment Review Board and the Australian Taxation Office, while other required approvals are also progressing well.

The company added that it expects to release of all shareholder documentation including shareholder circular and an information memorandum in March 2015 related to the spin off.

BHP said it intends primary listing on the Australian Securities Exchange for the spun-off company, with secondary listing on the Johannesburg Stock Exchange and standard listing on the UK Listing Authority's Official List and admission to trading on the London Stock Exchange.

BHP Billiton shares already have primary listing in Australia, and secondary listings in London, Johannesburg and New York.

Following the spin-off, expected in mid-2015, the company will continue its focus on the profitable as well as exceptionally large, high quality and long-life copper, petroleum, iron ore, and metallurgical coal assets.

The company had in mid-August announced the plans for the demerger of certain assets in to an independent global metals and mining company as it aims to become a simpler, more productive, higher-margin, higher-return company. Market analysts expect the new spin-off company to be worth about $18 billion.

BHP noted that creating two portfolios of complementary assets has the potential to unlock shareholder value. The demerger will increase BHP's focus on these four pillars, with potash as a potential fifth, and will be able to more quickly improve the productivity and performance of its largest businesses.

BHP Billiton has been simplifying its portfolio for over a decade and now has 41 assets world-wide. The proposed demerger would be a significant step towards focusing on the 19 core Iron Ore, Copper, Coal, Petroleum and Potash assets that generated 96 percent of its underlying EBIT in the 2014 financial year.

In August, BHP Billiton reported an increase in profit for fiscal 2014, as revenues benefited from strong production growth, despite weak prices.

BHP Billiton, which is grappling with falling commodity prices, had also put a freeze on the remuneration to be paid to Chief executive Andrew Mackenzie and other members of the company's senior management team for fiscal 2015.

BHP closed Wednesday's regular trading session on the NYSE at $55.85, down $1.69 or 2.94% on a volume of 3.59 million shares.