3rd Apr 2006 07:00
BHP Billiton PLC03 April 2006 3 April 2006Number 07/06 BHP BILLITON SUCCESSFULLY COMPLETES A$2.25 BILLION (US$1.6 BILLION) OFF-MARKET SHARE BUY-BACK BHP Billiton today announced the successful completion of its off-marketbuy-back of 96.0 million BHP Billiton Limited shares, which comprises the firststage of its US$2 billion capital management programme. Due to the strong demandavailable at an attractive price, BHP Billiton increased the buy-back to A$2.25billion (US$1.6 billion), representing 1.6% of the issued share capital of theBHP Billiton Group and 2.7% of BHP Billiton Limited. The final price for the buy-back has been set at A$23.45 per share, representinga discount of 14% to the volume weighted average price (VWAP) of BHP BillitonLimited shares over the 5 trading days up to and including the closing date ofthe buy-back(1). This significant discount to market ensures the buy-back is inthe best interests of BHP Billiton and all of its shareholders, regardless oftheir location, tax status or participation in the buy-back. The closing pricefor BHP Billiton Limited and the opening price for BHP Billiton Plc on 31 March2006 were A$28.00 and 10.67 pounds(2), respectively. BHP Billiton's Chief Financial Officer, Alex Vanselow, said "the successfulexecution of the off-market buy-back provides an optimal means for maximisingeconomic value for all of our shareholders. Shareholders in both BHP BillitonLimited and BHP Billiton Plc will benefit from the enhanced value of theremaining shares through the increased earnings, cash flow and return on equityattributable to each share." "We are pleased with the strong support that we have received from shareholders,which has enabled us to significantly increase the size of the buy-back toA$2.25 billion from the previously announced A$1.5 billion target. It isintended that the balance of US$0.4 billion will be returned to our shareholdersvia on-market purchases, most likely of BHP Billiton Plc shares. The Board ofBHP Billiton believes that this US$2 billion capital management initiative,which is in addition to the 3 US cents per share increase in the interimdividend, demonstrates our continued commitment to capital discipline as well asour confidence in the Company's outlook and strong cash generativecapabilities," Mr Vanselow said. Due to the very strong demand for the buy-back, a scale back of tenders isrequired. Shareholders who tendered their shares at a 14% discount and/or asfinal price tenders, will have a priority allocation of 200 shares bought backbefore the scale back is applied. As a result of the 63.47% scale back,successful shareholders will have 36.53% of their shares tendered in excess ofthe priority allocation bought back. No tenders were excluded on the basis of aminimum price condition. To ensure that registered shareholders with small holdings are notdisadvantaged, the scale back has been structured so that successfulshareholders who tendered all of their shares at a 14% tender discount and/or asa final price tender and who would be left with 80 shares or less as a result ofthe priority allocation and scale back, will have all of their shares boughtback in full. For shareholders who have successfully tendered their shares, A$21.35 of thebuy-back price is treated for Australian tax purposes as a fully frankeddividend. For Australian capital gains tax purposes, the deemed capital proceedsare A$5.96, being the A$2.10 capital component plus A$3.86, being the excess ofthe Tax Value(3) over the buy-back price. Payments to bank accounts and dispatch of cheques for shares bought back areexpected to be completed by Monday, 10 April 2006. Shares that have beentendered into the buy-back but not bought back are expected to be released toshareholders during Monday, 3 April 2006. Shareholders who have any enquiries in relation to their tenders may contact theBHP Billiton buy-back enquiry line on 1300 781 469 within Australia or +61 39415 4254 if calling from outside of Australia. (1) BHP Billiton Limited's cumulative VWAP for the 5 trading days up to andincluding 31 March 2006was A$27.2665. (2) Equivalent to A$25.87 at an exchange rate of A$2.4244 = GBP 1.00. (3) The Tax Value of A$27.31 was calculated as A$24.42 adjusted by the movementin the BHP Billiton Plc share price from the close of trading in London on 14February 2006 to the opening of trading in London on 31 March 2006, as agreedwith the Australian Taxation Office. Further information on BHP Billiton can be found on our Internet site:www.bhpbilliton.com Contacts:Australia United KingdomJane Belcher, Investor Relations Mark Lidiard, Investor & Media RelationsTel: +61 3 9609 3952 Mobile: +61 417 031 653 Tel: +44 20 7802 4156 Mobile: +44 7769 934 942email: [email protected] email: [email protected] Evans, Media Relations Illtud Harri, Media RelationsTel: +61 3 9609 2898 Mobile: +61 400 693 915 Tel: +44 20 7802 4195 Mobile: +44 7920 237 246email: [email protected] email: [email protected] United States South AfricaTracey Whitehead, Investor & Media Relations Alison Gilbert, Investor RelationsTel: US +1 713 599 6100 or UK +44 20 7802 4031 Tel: SA +27 11 376 2121 or UK +44 20 7802 4183Mobile: +44 7917 648 093 email: [email protected]: [email protected] BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209Registered in Australia Registered in England and WalesRegistered Office: Level 27, 180 Lonsdale Street Melbourne Registered Office: Neathouse Place London SW1V 1BH UnitedVictoria 3000 KingdomTelephone +61 1300 554 757 Facsimile +61 3 9609 3015 Telephone +44 20 7802 4000 Facsimile +44 20 7802 4111 The BHPBilliton Group is headquartered in Australia This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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