Laden with cash, mining giant BHP Billiton has announced it will return up to US$2 billion to its shareholders, including an off-market stock buyback for Australian shareholders worth between US$700,000 and US$1.1 billion.
Still, BHP claims that U.S. and Canadian holders of depositary receipts will benefit from the Aussie-only arrangement because “the value of the remaining shares will therefore be enhanced through the increased earnings, cash flow and return on equity attributable to each share.”
Following the buyback, BHP will consider ways to return the balance of the US$2 billion to shareholders within 12 months. Options include more stock buybacks and higher dividends.
BHP ended Tuesday up US50 at US$21.63 on the Big Board.
Be the first to comment on "BHP to buy back shares"