BHP Billiton to list spin-off in London

16th October 2014, Comments 0 comments

BHP Billiton Thursday said it plans to list its new spin-off in London after British shareholders complained about the mining giant's decision to list only in Australia and South Africa.

The firm, which is listed in Sydney and London, outlined a proposal in August to create a new independent company by demerging non-core assets, including some of its aluminium, coal, manganese, nickel and silver operations.

Under the plan, the new entity -- provisionally named NewCo -- was to be listed in Australia with a secondary listing in Johannesburg.

But the decision angered shareholders in London as British investment rules meant some of them would not be able to hold stock in the new firm.

"We are pleased to offer an additional listing in London in response to the interest investors have shown in the new company," BHP's chief executive Andrew Mackenzie said in a statement.

"We continue to work towards completion of the demerger in the first half of the 2015 calendar year, subject to receipt of the necessary approvals."

By spinning off some assets into a new company, BHP said it would be able to focus more intensively on its core long-life operations -- iron ore, copper, petroleum, coal and potash.

© 2014 AFP

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