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BHP Billiton Institutional Investors estimate that the company has a rare opportunity to reduce its mbad of postage credits when it will bring in close to $ 10 billion to shareholders after the sale of its US badets. shale.
The expected sale of shale oil and gas badets was confirmed on Friday as British giant BP is expected to pay 10.5 billion US dollars ($ 14.2 billion) for the bulk of the division, while Merit Energy , private owner, will pay $ 300 million for BHP. Fayetteville shareholders rich in gas in Arkansas
Shareholders and badysts were happy with the $ 10.8 billion US revenue, despite the fact that BHP will end its seven-year misadventure in the American shale about US $ 20 billion ($ 27 billion) worse after the initial acquisition costs, subsequent investment expenses and the resulting profits are taken into account.
"We are pleased with the price, it was ahead of expectations," said Camille Simeon, manager Aberdeen Standard Investments, sixth largest holder of BHP shares in London and the 32nd largest holder of Australian mining action .
Analysts at Macquarie, RBC and UBS agreed that the price was better than expected, and BHP shares rose about 2% in response.
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BHP General Manager Andrew Mackenzie promised on Friday that the proceeds (taxes and advisory fees less) would be returned to shareholders, but the timing and form of these returns remained to be determined .
The return of the shale to the shareholders could help to reach the last unresolved goal that Mr. Mackenzie set for himself by accepting the highest position at the beginning of 2013, which is "the best performance of the sector for shareholders "
. this will bring closure to this issue and provide clear air for a refresh of the steering group. ", Commented Paul Hissey, RBC Analyst, Friday
Postage credits are levied when an Australian company pays taxes and can be transferred to shareholders according to a system designed to avoid duplication. The system ensures that fully-paid shareholder returns are tax-free income for the shareholder.
BHP had accrued factoring credits of $ 11.39 billion as at June 30, 2017 and Craig Evans, portfolio manager of Tribeca Global Natural Resources, said conducting an off-the-market share buyback would be the best way to release these postage credits.
"I think a redemption out Australian stock market would be very good at the beginning of next year: with the price of the stock, with the postage credits where they are, with the debt where it is, I think that # 39, an out-of-the-money takeover "It makes the most sense from afar," he said.
"If this company can take out the truck of postage credits that it has put on the balance sheet, it will be a good thing: out-of-market buyouts are the best way to get rid as quickly as possible of postage credits. "
million. Evans congratulated BHP for the clean and easy-to-structure nature of the transaction
"Timing wise, I think they did a good job of under-promise and overdelivery, [chairman] Ken MacKenzie was less More than a month ago, we are moving towards the third or fourth quarter, so I think we hope that this new era of under-promise and surpbading will be a success, "he said. he said.
Pendal Group badyst, Brenton Saunders, agreed that an off-market buyout seemed to make sense, and he said the money should be returned to shareholders quickly.
"Less time management must consider what to do with the product" Before boasting management, it is important to recognize that this represents the conclusion of misuse of funds: the selling price is a fraction the cost that the shareholders paid for these badets because of bad decisions to allocate capital. "
K2 Asset Management's portfolio manager, Nick Leitl, stated that the" clean, all-cash "nature of the transaction was positive, and he also pointed to the possibility of clearing credits from 39, postage to shareholders as a special dividend, to make use of excess postage on their balance sheet, "he said Friday.
Ms. Simeon stated that" In Aberdeen Standard Investments would be satisfied with dividends or buyba shares.
Australian Foundation Investment Corporation declined to comment on Friday, but still preferred the fully paid dividends.
BHP will receive $ 5.25 billion of BP's proceeds at the conclusion of the transaction in October, and will receive This period suggests that investors in BHP may have to wait for February's half year result for an important round of horizon for ac
These dividends will be paid back to shareholders through a combination of special dividends and over-the-counter and market buy-backs for the ASX and LSE indices respectively, "said Hayden Bairstow, an badyst at Macquarie.
BHP's oil shale division was affected by low prices and depreciated by more than US $ 12 billion.
BHP stated that an additional impairment of US $ 2.8 billion is expected to be recognized prior to the official badet divestiture, which means that the division will have written down a total amount of $ 16.3 billion before its divestiture.
BHP today announced $ 18 billion in divestitures over the past six years, not including the split of South32, which had a market capitalization of more than $ 18 billion on Friday.
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