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BHP completes sale of Onshore US assets

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idpickering
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BHP completes sale of Onshore US assets

#177399

Postby idpickering » October 31st, 2018, 4:14 pm

BHP has completed the sale of its interests in the Eagle Ford, Haynesville and Permian Onshore US oil and gas assets to BP America Production Company (a subsidiary of BP Plc) (BP) for a gross consideration of US$10.5 billion.

BP paid one-half of the gross consideration at completion (less customary completion adjustments of US$0.2 billion), with the balance (deferred consideration) being payable in six equal instalments over a six month period, the first instalment to be paid one month after completion. Payment of the deferred consideration is not subject to any conditions.

As announced on 28 September 2018, BHP has completed the sale of its Fayetteville Onshore US gas assets for a consideration of US$0.3 billion.


https://www.investegate.co.uk/bhp-billi ... 57178964F/

funduffer
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Re: BHP completes sale of Onshore US assets

#177404

Postby funduffer » October 31st, 2018, 4:32 pm

Any chance shareholders may see any of this?

FD

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Re: BHP completes sale of Onshore US assets

#177407

Postby Breelander » October 31st, 2018, 4:54 pm

funduffer wrote:Any chance shareholders may see any of this?


Wait and see. From the RNS...
BHP is committed to returning these net proceeds to shareholders, and will make a further announcement on 1 November 2018 as to the form and timing of distribution of the proceeds.

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Re: BHP completes sale of Onshore US assets

#177409

Postby ax1709cjm » October 31st, 2018, 4:55 pm

From the link:
BHP is committed to returning these net proceeds to shareholders, and will make a further announcement on 1 November 2018 as to the form and timing of distribution of the proceeds.

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Re: BHP completes sale of Onshore US assets

#177411

Postby funduffer » October 31st, 2018, 5:07 pm

If I have got this right then.........

They have sold $10bn of assets, and the market cap is about $42bn.

I make that nearly a quarter of the market cap!

Could be a good wedge, or do we expect something else?

FD

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Re: BHP completes sale of Onshore US assets

#177412

Postby funduffer » October 31st, 2018, 5:08 pm

Just realised its 1st November tomorrow, so I guess I should be patient!

FD (doh!)

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Re: BHP completes sale of Onshore US assets

#177419

Postby monabri » October 31st, 2018, 5:35 pm

funduffer wrote:If I have got this right then.........

They have sold $10bn of assets, and the market cap is about $42bn.

I make that nearly a quarter of the market cap!

Could be a good wedge, or do we expect something else?

FD



I think that the total mkt cap is approx $133billion USD. The UK side is ~£32.3 billion .

Will we get a special or will we have share buy backs..? I'd prefer a special ;)

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Re: BHP completes sale of Onshore US assets

#177422

Postby idpickering » October 31st, 2018, 5:42 pm

monabri wrote:
Will we get a special or will we have share buy backs..? I'd prefer a special ;)


Me too I must admit.

Ian.

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Re: BHP completes sale of Onshore US assets

#177483

Postby Steveam » October 31st, 2018, 11:09 pm

Both a buy back and a special dividend.

https://www.bhp.com/media-and-insights/ ... ent=Footer

Special dividend payment date 30-January-2019.

Best wishes,

Steve

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Re: BHP completes sale of Onshore US assets

#177484

Postby monabri » October 31st, 2018, 11:41 pm

Special Dividend record date (including currency conversion and currency election dates for ASX and London Stock Exchange), 11 January 2019


Special Dividend payment date, 30 January 2019

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Re: BHP completes sale of Onshore US assets

#177487

Postby Breelander » November 1st, 2018, 12:58 am

Steveam wrote:Both a buy back and a special dividend.

https://www.bhp.com/media-and-insights/ ... ent=Footer


From your link, the buy back is to be Off Market. In other words eligible shareholders will be able to tender their shares to BHP to be be bought back. What's the betting that nominee holdings are not 'eligible', only certificated holdings?

Eligible shareholders will be sent a personalised Off-Market Buy-Back information flyer detailing how eligible shareholders can obtain a copy of the Off-Market Buy-Back booklet (Buy-Back Booklet). The Buy-Back Booklet contains the Off-Market Buy-Back terms and conditions (including eligibility and details of the tender process), and is expected to be available on our website (bhp.com), or (if requested) dispatched in hardcopy, from Thursday 8 November 2018.


The full details of the Off-Market buy back and eligibility should be announced shortly...
Off-Market Buy-Back announcement, 1 November 2018

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Re: BHP completes sale of Onshore US assets

#177493

Postby idpickering » November 1st, 2018, 7:02 am

BHP announces US$10.4 billion shareholder return program

BHP plans to return US$10.4 billion to its shareholders through the combination of an off-market buy-back and a special dividend.

The program will commence immediately with BHP targeting an off-market buy-back of US$5.2 billion (A$7.3 billion)(1) of BHP Billiton Limited shares (Off-Market Buy-Back) under which BHP Billiton Limited can buy back shares at up to a 14% discount. BHP intends to pay the balance of the net proceeds from the sale of its Onshore US assets (expected to be US$5.2 billion) to all shareholders in the form of a special dividend (Special Dividend) to be determined following completion of the Off-Market Buy-Back, and to be payable in January 2019.

BHP Chief Executive Officer, Andrew Mackenzie, said "We made a commitment that all the net proceeds from the disposal of our Onshore US assets would be returned to shareholders and we are honouring that commitment now that the sale transactions have been completed. Returning this US$10.4 billion will bring the total cash returned to shareholders to US$21 billion over the last two years."


https://www.investegate.co.uk/bhp-billi ... 00019515F/

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Re: BHP completes sale of Onshore US assets

#177503

Postby Steveam » November 1st, 2018, 7:49 am

Unless I’ve got in a muddle with millions and billions I think we should get about 1USD per share for the special dividend.

Best wishes,

Steve

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Re: BHP completes sale of Onshore US assets

#177506

Postby mike » November 1st, 2018, 8:04 am

Steveam wrote:.... I think we should get about 1USD per share for the special dividend.


From BLT's results, the dividends paid in the financial year to 30 June 2018 were 98¢ and totalled US$5,221 million.

BLT are stating the special dividend will be US$5.2 billion, so this supports Steve's estimate of around $1 per share

https://www.investegate.co.uk/bhp-billiton-plc--blt-/rns/bhp-results-for-the-year-ended-30-june-2018/201808210700013585Y/
Details on page 43

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Re: BHP completes sale of Onshore US assets

#177515

Postby tjh290633 » November 1st, 2018, 8:30 am

If you read the RNS, it says that the Off-market buy back is only expected to be useful to Australian shareholders, because of the way it is structured. It is more akin to a tender offer. Other shareholders will do better to sell in the market.

TJH

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Re: BHP completes sale of Onshore US assets

#177516

Postby daveh » November 1st, 2018, 8:30 am

Breelander wrote:
Steveam wrote:Both a buy back and a special dividend.

https://www.bhp.com/media-and-insights/ ... ent=Footer


From your link, the buy back is to be Off Market. In other words eligible shareholders will be able to tender their shares to BHP to be be bought back. What's the betting that nominee holdings are not 'eligible', only certificated holdings?

Eligible shareholders will be sent a personalised Off-Market Buy-Back information flyer detailing how eligible shareholders can obtain a copy of the Off-Market Buy-Back booklet (Buy-Back Booklet). The Buy-Back Booklet contains the Off-Market Buy-Back terms and conditions (including eligibility and details of the tender process), and is expected to be available on our website (bhp.com), or (if requested) dispatched in hardcopy, from Thursday 8 November 2018.


The full details of the Off-Market buy back and eligibility should be announced shortly...
Off-Market Buy-Back announcement, 1 November 2018


Unless you hold shares in the Australian company and are resident in Australia there is no reason why you would want to partake in the buy back as the company is buying the shares at a discount to the market price.

The Off-Market Buy-Back is considered an off-market buy-back for the purposes of the Income Tax Assessment Act 1936 (Cth). BHP Billiton Limited will repurchase BHP Billiton Limited shares under the Off-Market Buy-Back at a discount of up to 14 per cent to the volume weighted average price (VWAP) of BHP Billiton Limited shares (Buy-Back Price), where the VWAP will be calculated for the five trading day period up to and including the closing date of the Off-Market Buy-Back (Market Price). Eligible shareholders of BHP Billiton Limited may tender some or all of their shares at discounts of between 10 per cent and 14 per cent inclusive (at one per cent intervals) to the Market Price or as a final price tender (which is an election to receive the Buy-Back Price). Eligible shareholders may also impose a minimum price condition on their tender, and if the Buy-Back Price is less than the minimum price specified, then that shareholder's tender will not be accepted. The Buy-Back Price will be determined according to the tenders lodged by eligible shareholders and the Market Price.


BHP Billiton Limited does not anticipate that shareholders who are resident outside Australia will participate, as they are likely to obtain a better outcome by selling their shares on-market.

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Re: BHP completes sale of Onshore US assets

#178289

Postby monabri » November 5th, 2018, 4:39 pm

Ummmm... someone might have eyes on any spare funds...

https://www.londonstockexchange.com/exc ... 58600.html

"Mining giant BHP Billiton PLC is facing a multibillion-pound lawsuit over the Samarco dam catastrophe in Brazil in one of the largest claims in British legal history. The class action, which is being handled by SPG Law, counts more than 240,000 claimants including several Brazilian municipalities, the Roman Catholic Archdiocese of Mariana and members of the Krenak indigenous community."

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Re: BHP completes sale of Onshore US assets

#178320

Postby monabri » November 5th, 2018, 7:20 pm

To compound matters...I can see this being ' expensive' ....our HSE would have a field day!

https://www.bloomberg.com/news/articles ... operations

"BHP Billiton Ltd. was forced to derail a runaway train that traveled almost 60 miles without a driver across the Pilbara, a major iron ore producing area in Western Australia"

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Re: BHP completes sale of Onshore US assets

#187338

Postby Steveam » December 16th, 2018, 10:36 pm

And the actual amounts and details:

https://www.bhp.com/media-and-insights/ ... l-dividend

Special dividend USD 1.02/share payable 30th January 2019.

Best wishes,

Steve

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Re: BHP completes sale of Onshore US assets

#187356

Postby onslow » December 17th, 2018, 7:34 am

Dont forget however they have made a large loss on these Onshore US assets

https://www.abc.net.au/news/2018-07-27/ ... s/10042682

Special dividend good in the sense it lessens the chance of BHP management making yet another bad acquisition, but the company itself has lost a lot of money on these assets.

In fact I cant recall any acquisition made by BHP over the last 15-20 years which has gone well, if it wasnt for their oil and Iron Ore interests purchased in the 1970s/80s they would be toast. Those assets throw off cash and are relatively low risk. Shareholders would have been better off telling the management just to manage those and not try and be smart by doing M & A !


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