http://www.ft.com/intl/companies/mining
BHP Billiton ended speculation about the name of its new spin-off company that will hold up to $15bn in non-core assets, calling it South32.
The Anglo-Australian resources group said the name of the new company reflected the fact that most of its assets are located in the southern hemisphere linked by the 32nd parallel line of latitude. It was chosen following the suggestion of an employee, said the company.
“Our heritage and the places in which we operate are an important part of our identity,” said Graham Kerr, chief executive elect of South32.
“While South32 is grounded in the southern hemisphere, we will retain our global reach and ambition as we seek to exceed the expectations of a global shareholder base.”
South32 will have a primary listing in Australia as well as a secondary listing in South Africa and a standard listing in London.
BHP is in the midst of a major corporate restructuring designed to simplify the group and boost profitability. It is bundling a swath of non-core assets into a separate diversified mining company, the “newco”, which it initially proposed to list only on stock exchanges in Australia and South Africa. But following protests from UK investors it changed course.
Mining companies have embarked on deep cost-cutting programmes across their operations following a decade-long investment boom that resulted in poor returns for investors.
BHP, which has a market capitalisation of $130bn, is putting a collection of its global assets — producing aluminium, nickel, manganese, coal and silver in countries from Brazil to Australia — into the new vehicle, in which it will not retain a stake.
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