buying up assets that may never deliver returns.
“Giving $10 billion back shows you they probably don’t see opportunities to deploy a huge amount of capital internally at the moment,” Butel said.
“The whole industry’s probably learned from the previous boom and would be quite hesitant to go out and do a large acquisition.”
Bidding into the off-market buyback will open on November 19 and close on December 14. Investors are allowed to tender in shares at up to a 14 per cent discount to the market price. dividend.
“Returning this $10.4 billion will bring the total cash returned to shareholders to $21 billion over the last two years,” BHP Chief Executive Officer Andrew Mackenzie said.
Australian institutional investors were pleasantly surprised the buyback was for BHP’s Australialisted shares rather than its UKlisted shares, said Paul Xiradis, Chief Executive of Ausbil Dexia, which owns BHP stock.
The investors had thought the buyback would apply to the UKlisted shares, Xiradis said, as they typically trade at a discount because