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BIL - BHP Billiton Plc - BHP Billiton successfully completes A$6.0 Billion
(Us$6.3 Billion) off-market buy-back of BHP Billiton Limited Shares
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
Number: 12/11
Date: 11 April 2011
BHP BILLITON SUCCESSFULLY COMPLETES A$6.0 BILLION (US$6.3 BILLION) OFF-MARKET
BUY-BACK OF BHP BILLITON LIMITED SHARES
BHP Billiton today announced the successful completion of its off-market
tender buy-back (Off-Market Buy-Back) of BHP Billiton Limited shares. The
final transaction size of A$6.0 billion (US$6.3 billion) has enabled BHP
Billiton Limited to buy back 147 million shares, which represents 4.4 per cent
of the issued share capital of BHP Billiton Limited.
The final price for the Off-Market Buy-Back has been set at A$40.85 per share,
which represents a discount of 14 per cent to the market price of A$47.4985
per share. The final price has allowed BHP Billiton to purchase a significant
amount of BHP Billiton Limited shares at a material discount to the market
price. The Off-Market Buy-Back is expected to have a positive impact on BHP
Billiton`s earnings per share, cash flow per share and return on equity. As a
result, the Off-Market Buy-Back is expected to benefit all BHP Billiton
shareholders regardless of location, tax status or participation in the Off-
Market Buy-Back.
BHP Billiton Group Executive and Chief Financial Officer, Alex Vanselow, said
"We are pleased to have successfully completed this transaction, which returns
capital to participating investors in an expeditious manner while maximising
economic value for all our shareholders. When combined with our ongoing
commitment to invest in high quality growth opportunities and our progressive
dividend policy, today`s announcement further demonstrates the disciplined and
predictable manner in which we approach capital deployment."
BHP Billiton has now repurchased US$7.8 billion worth of BHP Billiton Limited
and BHP Billiton Plc shares under the capital management program that was
reactivated on 16 November 2010 and expanded to US$10 billion on 16 February
2011. Subject to market conditions, BHP Billiton expects that the US$2.2
billion remaining on this program will be completed through further share buy-
backs by the end of the 2011 calendar year.
Due to the strong demand for the Off-Market Buy-Back, a scale back of tenders
was required. Subject to exclusions due to a minimum price condition,
shareholders who tendered their shares at a 14 per cent discount and/or as
final price tenders will have a priority allocation of 125 shares bought back
before the scale back is applied. As a result of the 78.27 per cent scale
back, successful shareholders will have 21.73 per cent of their shares
tendered in excess of the priority allocation bought back.
To ensure that registered shareholders with small holdings are not
disadvantaged, the scale back was structured so that successful shareholders
who tendered all of their shares at a 14 per cent tender discount and/or as a
final price tender and who would be left with 50 shares or less as a result of
the priority allocation and scale back, will have all of their shares bought
back in full.
For shareholders who have successfully tendered their shares, A$40.57 of the
Off-Market Buy-Back price is treated for Australian tax purposes as a fully
franked dividend. For Australian capital gains tax purposes, the deemed
capital proceeds are A$9.31, being the A$0.28 capital component plus A$9.03,
which is the excess of the tax value over the buy-back price.
Payments to bank accounts and dispatch of cheques for shares bought back are
expected to be completed on Monday, 18 April 2011. Shares that have been
tendered into the Off-Market Buy-Back but not bought back are expected to be
released to shareholders during Monday, 11 April 2011.
Shareholders who have any enquiries in relation to their tenders may contact
the BHP Billiton buy-back enquiry line on 1300 612 584 within Australia, 0800
451 521 within New Zealand or +61 3 9415 4868 if calling from outside of
Australia or New Zealand, or visit our website www.bhpbilliton.com.
Refer to the Appendix for a summary of the key results regarding the Off-
Market Buy-Back.
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom & South Africa
Brendan Harris, Investor Relations Andre Liebenberg, Investor Relations
Tel: +61 3 9609 4323 Tel: +44 20 7802 4131
Mobile: +61 437 134 814 Mobile: +44 7920 236 974
email: Brendan.Harris@bhpbilliton.com email:
Andre.Liebenberg@bhpbilliton.com
Samantha Stevens, Media Relations
Tel: +61 3 9609 2898 United Kingdom & Americas
Mobile: +61 400 693 915 Ruban Yogarajah, Media Relations
email: Samantha.Stevens@bhpbilliton.comTel: US +1 713 966 2907 or
UK +44 20 7802 4033Mobile: UK +44 7827
082 022
Amanda Buckley, Media Relations email: Ruban.Yogarajah@bhpbilliton.com
Tel: +61 3 9609 2209
Mobile: +61 419 801 349 Americas
email: Amanda.Buckley@bhpbilliton.com Scott Espenshade, Investor Relations
Tel: +1 713 599 6431
Kelly Quirke, Media Relations Mobile: +1 713 208 8565
Tel: +61 3 9609 2896 email: Scott.Espenshade@bhpbilliton.com
Mobile: +61 429 966 312
email: Kelly.Quirke@bhpbilliton.com
Fiona Martin, Media Relations
Tel: +61 3 9609 2211
Mobile: +61 427 777 908
email: Fiona.Martin2@bhpbilliton.com
BHP Billiton Limited BHP Billiton Plc
ABN 49 004 028 077 Registration number 3196209
Registered in Australia Registered in England and Wales
Registered Office: Registered Office: Neathouse Place
180 Lonsdale Street London SW1V 1BH United Kingdom
Melbourne Victoria 3000 Australia Tel +44 20 7802 4000
Tel +61 1300 55 4757 Fax +44 20 7802 4111
Fax +61 3 9609 3015
Members of the BHP Billiton group which is headquartered in Australia
Date: 11/04/2011 07:15:40 Supplied by www.sharenet.co.za
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