BHP announces US$10.4 billion shareholder return program

BHP Billiton announced a new shareholder return program.

In November 2014 I bought 30 shares of BHP Billiton–ADR (BBL). BBL-ADR consists of two shares of BHP Billiton. It has been a rocky ride since then. I endured a dividend slash in February 2016 and again a smaller dividend cut of 14.3% in September 2016.

Luckily it hasn’t been all that bad. I received a total of $ 213 in dividend. And the share prices is rising again and I received 4 dividend increase (150% in March 2017, 7.5% in September 2017, 28% in February 2018 and 14.55% in September 2018).





Shareholder return program

The plan is to return US$10.4 billion to its shareholders through the combination of an off-market buy-back and a special dividend.

BHP Chief Executive Officer, Andrew Mackenzie, said “We made a commitment that all the net proceeds from the disposal of our Onshore US assets would be returned to shareholders and we are honouring that commitment now that the sale transactions have been completed.”

Ken MacKenzie – BHP Chairman, said “Consistent with our Capital Allocation Framework, the Board has carefully considered how best to return the net proceeds to our shareholders. We believe that the off-market buy-back and special dividend program announced today will return significant value to all our shareholders.”

BHP Billiton states that all shareholders are expected to benefit from this program. The program will commence immediately with a buy-back of US$5.2 billion of BHP Billiton Limited shares. Furthermore BHP intends to pay the balance of the net proceeds from the sale of its Onshore US assets (expected to be US$5.2 billion) to all shareholders in the form of a special dividend to be payable in January 2019.

Because I own ADR’s, I’ll not be eligible to participate in the off-market buy-back. At this moment I don’t know what that exactly means for my Vrijheid Fonds. I will keep a close eye on it. When I know more, I will come back with a new post.

The Special Dividend will be determined and announced at December 17th, 2018.

What do you think of this Shareholder Return Program? I like to hear from you





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