BHP Billiton plans London listing for new metals and mining company

24 September 2014 (Last Updated September 24th, 2014 18:30)

BHP Billiton is looking at a London listing for its planned metals and mining company, which will be created from demerging some of its non-performing assets, including the aluminium, bauxite and nickel businesses, worth approximately $16bn.

BHP

BHP Billiton is looking at a London listing for its planned metals and mining company, which will be created from demerging some of its non-performing assets, including the aluminium, bauxite and nickel businesses, worth approximately $16bn.

In August, the company announced that the new entity will be listed on Australia's stock exchange and have a secondary listing in South Africa.

However, some UK-registered shareholders and investors have expressed concerns over the lack of a listing on the London stock exchange.

In a letter to investors, BHP Billiton chairman Jacques Nasser wrote: "We have been pleased by the support for the demerger and the level of interest investors have shown in the new company.

"Based on this, we are now assessing a potential standard listing in London for the new company.

"This listing would be in addition to the new company's previously announced proposed primary listing on the Australian Securities Exchange [ASX] and secondary inward listing on the Johannesburg stock exchange."

"We are now assessing a potential standard listing in London for the new company."

The company is currently awaiting approvals from the government, tax, regulatory and other third party bodies to proceed with the demerger of assets into the new company.

Upon receiving approvals, BHP shareholders will vote on the demerger, which is expected to occur before June 2015.

The new firm will operate BHP's aluminium and manganese businesses, Cerro Matoso nickel, Energy Coal South Africa, Illawarra Metallurgical coal and Cannington silver-lead-zinc mines.

After this, BHP Billiton will focus on iron ore, copper, coal, petroleum and potash, which have generated 96% of its income in the 2014 financial year.


Image: BHP Billiton chairman Jacques Nasser. Photo: courtesy of BHP Billiton.

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