BHP urged to review its dual structure

Activist investor Elliott Management has called on BHP Billiton to immediately review its dual structure after commissioning research that argues reorganising as a single company in Australia would add more than $22bn in value to shareholders of the miner.

Creating a unified company, headquartered and incorporated in Australia, with a primary listing in that country and additional listings elsewhere, would cost $391m, according to the report by FTI Consulting.

BHP is the world’s largest miner and currently operates as two entities based in Melbourne and London.

The miner’s board should publicly commit to its own review by the time the company announces half-year earnings on February 20, Elliott said in a letter to chairman Ken MacKenzie, reigniting its campaign against the dual-listing structure made public in April 2017.

New York-based Elliott, run by billionaire Paul Singer, is the second largest holder of BHP’s London-listed stock.

Elliott has also called on the miner to deliver enhanced returns and overhaul its oil and gas unit.

BHP CEO Andrew Mackenzie said in October the costs of ditching the dual listing would exceed the potential benefits. The miner previously calculated that the move would probably cost at least $1.3bn.

Under BHP’s existing structure the company has two headquarters and two main stock market listings, but is run as a single entity under the same management and board.

Elliott has previously said the creation of a single Australian company would increase BHP’s value by removing a discount between its shares in London and Sydney. could be added to shareholder value, says research