South32 to buy back shares for $500m
Diversified miner says the capital programme will initially take the form of an on-market share buyback in Australia
Diversified miner South32 would use $500m of its spare cash to buy back shares over the next 12 months, it said on Monday. CEO Graham Kerr said the decision to buy back shares on the open market rather than off-market or make a cash distribution was based partly on tax considerations for Australian shareholders, who comprise about half of the share register, and partly on the flexibility in the programme. As it would spread its open-market share purchases over a year, South32 could buy at an appropriate share price level or halt buying if the share-price went too high. The group, which was spun out of BHP Billiton three years ago, is listed in Sydney, London and Johannesburg. Its coal, lead, aluminium, zinc, manganese, nickel and silver assets are spread across several countries in the southern hemisphere. In the six months to December, South32 reported its free cash flow doubled as market conditions turned more favourable and the cost base shrank. It declared an interim dividend of...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.