BHP Billiton will list its $15 billion spin-off in London
BHP Billiton has caved into pressure from UK investors to list its yet-to-be-named $15 billion spin-off of unwanted assets (mining activities that BHP does not feel are profitable enough) in London.
The company said it is looking for a London listing for the new company, it will also have a primary listing in Australia as well as a secondary listing in South Africa.
Originally BHP was going to list the operation in Australia, however, European investors (who can only invest in companies listed there) complained that they would be excluded.
Therefore, the company has opted for a “standard” UK listing. This is a second tier of shares that aren’t included in the FTSE indices.
Chief executive Andrew Mackenzie said in a statement on Friday:
‘We are pleased to offer an additional listing in London in response to the interest investors have shown in the new company,”
In August the company announced that it would be spinning off its aluminium, coal, manganese, nickel and silver assets into the new company.