The Lemon Fool

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.

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

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.

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.

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

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

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

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

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.

Off-Market Buy-Back announcement, 1 November 2018

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."

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

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

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.