BHP Billiton Approves Demerger Of South32, Plans To Reduce Core Assets To 19

(RTTNews) - Mining giant BHP Billiton Ltd. (BHP.AX, BLT.L, BBL, BHP) Wednesday announced the demerger of South32 at its shareholder meeting in London and Perth. The company said it expects the demerger to create long term value and to simplify its portfolio, while retaining the benefits of scale and diversification.

Jac Nasser, chairman of BHP Billiton further said it would reduce its 41 assets to a core portfolio of 19 and recommend shareholders vote in favour of the demerger of South32 from BHP Billiton.

After the demerger, South32 will be a new and independent company, headquartered in Perth,with a diversified portfolio of high quality metals and mining assets. With David Crawford as Chairman and Graham Kerr as Chief Executive Officer, South32 will pursue an independent business strategy to create additional shareholder value. South32's shares will trade on stock exchanges in Australia, South Africa and London. BHP Billiton noted that South32 is planning to distribute a proportion of its underlying earnings as dividends, subject to its cash flow priorities.

On the effective date of the demerger, eligible shareholders will also receive a share in South32 for every BHP Billiton share held.