BHP Billiton Limited (ASX:BHP) is involved in the operations of discovering, acquiring and developing markets natural resources worldwide. On 16 October 2018, BHP Billiton Limited made an announcement regarding entering into a share subscription agreement with SolGold Plc. Under the share subscription agreement, SolGold will issue 100 million shares to BHP. Following this news, the share price of the company increased by 1.71 percent as on 16 October 2018.
The private placement by SolGold is expected to occur on 19 October 2018, and after this completion, the BHP’s interest in SolGold will rise from 6.01 percent to 11.2 percent. BHP Billiton Limited will be required to pay 45 pence per SolGold share, representing a 32 percent premium to the 20-day volume-weighted average London Stock Exchange price of 34 pence per share as determined on October 15, 2018.
Under the share subscription agreement, BHP is having a right to nominate one director to the SolGold board. The company also has anti-dilution rights for a two-year period to allow it to preserve its shareholding at 10 percent.
BHP has agreed that it will not acquire more shares in SolGold for a period of 2 years without SolGold’s consent, subject to certain exceptions. The company has also agreed to support the proposed change of control transactions relating to, and capital raising up to a limit by SolGold for a period of two years, provided these actions have the support of 60 percent of SolGold’s shareholders. During this period, BHP will also support proposals by the SolGold board to appoint or remove a director.
Recently, the company disclosed about the completion of the sale of its Fayetteville Onshore US gas assets. The assets were sold to a wholly owned subsidiary of Merit Energy Company. Merit acquired 100% of the issued share capital of BHP Billiton Petroleum Inc. and 100% of the membership interests in BHP Billiton Petroleum LLC, which hold the Fayetteville assets, for a total price of US$0.3 billion.
In FY 2018, the total revenue of the company increased from US$36,135 million in FY 2017 to US$43,638 million. The profit from operations of the company increased from US$12,554 million in FY 2017 to US$15,996 million in FY 2018. The loss after tax from discontinued operations increased from US$472 million in FY 2017 to US$2,921 million in FY 2018. The net cashflow from operating activities increased from US$16.804 million in FY 2017 to US$18,461 million in FY 2018, which reflects higher commodity prices and a strong operating performance during the year. In FY 2018, the company announced the highest ever final dividend of 63 cents per share and returned US$6.3 billion to its shareholders in the form of dividends. The company also announced the sale of our Onshore US assets for US$10.8 billion.
In the past six months, the share price of the company increased by 11.21 percent as on 15 October 2018. BHP’s shares traded at $33.910 with a market capitalization of $107.08 billion as on 16 October 2018 (AEST 1:11 PM).
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.