26th Mar 2007 07:00
BHP Billiton PLC26 March 2007 26 March 2007Number 10/07 BHP BILLITON SUCCESSFULLY COMPLETES A$3.5 BILLION (US$2.8 BILLION) OFF-MARKET SHARE BUY-BACK BHP Billiton today announced the successful completion of its off-marketbuy-back of 141.1 million BHP Billiton Limited shares. This completes the firststage of the US$10 billion buy-back programme that was announced on 7 February2007. The 141.1 million shares bought back represent 2.42 per cent of the issuedshare capital of the BHP Billiton Group and 4.03 per cent of BHP BillitonLimited. The final price for the buy-back has been set at A$24.81 per share, representinga discount of 14 per cent to the volume weighted average price (VWAP) of BHPBilliton Limited shares over the five trading days up to and including theclosing date of the buy-back(1). This significant discount to market ensures thebuy-back is in the best interests of all of BHP Billiton's shareholders,regardless of their location, tax status or participation in the buy-back. Theclosing price for BHP Billiton Limited and the opening price for BHP BillitonPlc on 23 March 2007 were A$29.20 and GBP11.10(2), respectively. In addition tothe completion of this off-market buy-back the on-market purchase of BHPBilliton Plc shares has continued. Since September 2006 104.9 million BHPBilliton Plc shares have been repurchased at an average price of GBP 9.60leaving approximately US$1 billion of this initiative to complete. BHP Billiton's Chief Financial Officer, Alex Vanselow, said "We are pleased withthe strong support we have received from shareholders in this transaction. Thesuccessful execution of the off-market buy-back maximises economic value for allour shareholders, who benefit from the enhanced value of the remaining sharesthrough the increased earnings, cash flow and return on equity attributable toeach share. "Completion of the off-market buy-back, combined with the ongoing on-marketpurchase of BHP Billiton Plc shares means we have repurchased 8.67 per cent ofthe capital of BHP Billiton since November 2004 and have spent US$8.6 billioncompleting these initiatives. We are targeting to spend the remaining US$8.2billion of the previously announced capital management programmes on furtherbuy-backs before August 2008. "Last month we also announced our tenth consecutive dividend increase. Ourprogressive dividend policy, together with sizeable capital initiatives,demonstrate our continued commitment to capital discipline as well as ourconfidence in our outlook and strong cash generative capabilities." Due to the strong demand for the buy-back, a scale back of tenders is required.Shareholders who tendered their shares at a 14 per cent discount and/or as finalprice tenders, will have a priority allocation of 200 shares bought back beforethe scale back is applied. As a result of the 62.43 per cent scale back,successful shareholders will have 37.57 per cent of their shares tendered inexcess of the priority allocation bought back. No tenders were excluded on thebasis of a minimum 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 per cent tender discountand/or as a final price tender and who would be left with 80 shares or less as aresult of the priority allocation and scale back, will have all of their sharesbought back in full. For shareholders who have successfully tendered their shares, A$22.31 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$7.39, being the A$2.50 capital component plus A$4.89, 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, 2 April 2007. Shares that have been tenderedinto the buy-back but not bought back are expected to be released toshareholders during Monday, 26 March 2007. Shareholders who have any enquiries in relation to their tenders may contact theBHP Billiton buy-back enquiry line on 1300 558 547 within Australia or +61 39415 4633 if calling from outside of Australia. (1) BHP Billiton Limited's cumulative VWAP for the 5 trading days up to andincluding 23 March 2007was A$28.8488.(2) Equivalent to A$27.06 at an exchange rate of A$2.4378 = GBP 1.00.(3) The Tax Value of A$29.70 was calculated as A$26.37 adjusted by the movementin the BHP Billiton Plc share price from the close of trading in London on 6February 2007 to the opening of trading in London on 23 March 2007, as agreedwith the Australian Taxation Office. Further information on BHP Billiton can be found on our Internet site:www.bhpbilliton.comAustralia United KingdomSamantha Evans, Media Relations Mark Lidiard, Investor & Media RelationsTel: +61 3 9609 2898 Tel: +44 20 7802 4156 Mobile: +44 7769 934 942email: [email protected] email: [email protected] Belcher, Investor Relations Illtud Harri, Media RelationsTel: +61 3 9609 3952 Mobile: +61 417 031 653 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 BHP Billiton 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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