BHP Share Buy-Back: Should You Accept The Offer?

BHP Share Buy-Back: Should You Accept The Offer?

If you hold BHP shares in your own name, family trust or self managed super fund, it is likely you have received information from BHP about a buy-back and a query of whether you wish to take part.

Key information: 

  • BHP will buy back $7.2bn AUD worth of its shares through an off-market tender.
  • The final price will be determined as the lowest price at which BHP can buy back the targeted amount of capital based on the tenders received.
  • The buy-back price will have a capital component of $0.38 per share, and the balance as a fully franked dividend.
  • Scale backs may apply. Any information about scale backs will be announced as soon as possible after the closing date.
  • In order to participate, shareholders must have at least 165 shares. If they have less than 165 shares, all of their shares must be tendered.
  • Participation in the buy-back is optional. Those wishing to participate must lodge tender documents by Friday, 14th December.

As such a large part of the buy-back is being paid as fully franked dividend, your decision regarding the buy-back is dependent on your tax rate and whether your think the stock will grow further in the long term.

Its important to understand your options. Paris Financial’s Private Wealth team are here to assist you with advice, assistance in completing paperwork, and reviewing whether your current portfolio is suitable for your specific purposes.

We do expect this buy-back will be popular and is due to close Friday 14th December, so get in touch as soon as possible with our Private Wealth team on 8393 1032 to book an appointment or have an initial chat.

Darren Foster, Partner

PARIS FINANCIAL