BHP today has announced an off market tender Buy-Back of BHP Billiton Limited shares. This Buy-Back forms part of the US$10 billion capital management program that was announced at its half yearly results presentation last week.
The Off-Market Buy-Back of BHP Billiton Limited shares with a target size of A$5 billion will commence immediately in accordance with the timetable as set out in the media release http://www.asx.com.au/asxpdf/20110222/pdf/41wxvkrjy6gdk6.pdf. BHP Billiton Limited may, at its discretion, vary the size of the Off-Market Buy-Back.
It is anticipated that all Buy-Back documentations will be sent out by the 16th March 2011 with the tender closing at 7pm (AEST) on the 8th April 2011
For Australian tax purposes, the final buy-back price received by participating shareholders will comprise the following:
- a capital component of A$0.28 per share; andÂ
- a fully franked deemed dividend equal to the final buy-back price less A$0.28 per share.
For the purpose of capital gains tax calculations, the capital proceeds will be the A$0.28 capital component plus an amount equal to the excess of the Tax Value over the final buyback price.
The tax consequences will be different for everybody, we do encourage you to seek professional advice before deciding whether or not to proceed with this Buy-Back offer.
Hey, Alfred here – Did you enjoy my latest article? Do you have any questions or Feedback for me? Call me on (02) 9266 2269 or Book an Appointment online.
Remember that our first meeting is cost and obligation free.
