BHP Billiton in £600m buyback
BHP Billiton, the Anglo-Australian miner headed by Chip Goodyear, will buy back up to A$1.5bn (£600m) of its shares to return profits to investors, as cash continues to pour into its coffers from soaring commodity prices.
In a statement issued by its Melbourne HQ today, BHP said it will buy back between A$1bn and A$1.5nbn of stock at about A$2.10 a share, plus a tax-paid dividend, allowing some Aussie investors to claim a capital loss on the sale.
Surging demand for commodities around the world - particularly from fast-expanding China - has lifted oil and iron ore prices to record levels.
The boom in commodities prices means BHP is sitting on US$1.69bn (£947m) cash and the proposal is part of plans to return up to US$2bn to shareholders.
The news sent BHP's shares 10 1/2p higher to 596p in London today after rising about 1.4% to A$14.95 in Sydney.
BHP will announce the full scale of the buyback and precise pricing by 23 November.
