Could there be a link to Lond16 Oct 2014 09:15
BHP spin-off to list in London
AMBER PLUM 48 MIN AGO
INDUSTRIES RESOURCES AND ENERGY
BHP Billiton has confirmed it will seek a London listing for the spin-off of its aluminium and manganese assets, announced in August, reversing an earlier position in response to investor demand.
The spin-off will now hold a standard listing on the London Securities Exchange in addition to the originally planned primary Australian Securities Exchange listing and secondary inward listing on the Johannesburg Stock Exchange, BHP Billiton said.
The U-turn follows an outcry from the European investing community, which had seen the decision not to pursue a London listing -- which BHP Billiton itself holds -- as a snub to the region.
Shares in the London-listed BHP Billiton Plc had suffered a significant sell-off in the wake of the announcement, losing close to 5 per cent in the hours following its outline of the divestment plans on August 19.
“We are pleased to offer an additional listing in London in response to the interest investors have shown in the new company," BHP Billiton chief executive officer Andrew Mackenzie said.
"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.”
The spin-off will house BHP Billiton's non-core aluminium and manganese businesses and the Cerro Matoso Nickel, Energy Coal South Africa, Illawarra Metallurgical Coal and Cannington Silver-Lead-Zinc mines -- most of which were acquired when BHP took over the UK's Billiton in 2001.
In contrast to BHP Billiton Plc, its market capitalisation will not be large enough for inclusion in London's benchmark FTSE 100 index.
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