Share Buy Back Program
BHP Limited
8 February 2001
BHP ESTABLISHES ON MARKET
SHARE BUY BACK PROGRAM
BHP Limited (BHP) today announced it would implement an on-market buyback
program for the purchase of up to 90 million of its shares (approximately five
per cent of issued capital).
The share buyback is in accordance with BHP's capital management disciplines to
return funds to shareholders when capital and debt servicing requirements are
met.
BHP Managing Director and CEO Paul Anderson said the share buyback is integral
to the Company's approach to capital management.
'The Company's strong cash flow position, combined with our cost reduction
program, asset sales and the rapid reduction in debt over the past 18 months,
provides the opportunity for BHP to deliver on this component of its shareholder
proposition,' he said.
'The share buyback also supplements other BHP capital management initiatives,
including debt reduction and lengthening of the debt maturity profile.'
BHP will conduct the purchase of its shares on-market, and as such, individual
shareholders are not required to take any action. No time period has been set
for the share buyback.
The shares will be purchased opportunistically, subject to market conditions,
debt levels and the operating environment, and subsequently cancelled.
BHP Chief Financial Officer Chip Goodyear said the on-market share buyback would
provide the Company with substantial flexibility in terms of the timing and
number of shares purchased.
'The share buyback is linked to the Company's operating and financial strategy
and will be funded from cash flows which are in excess of those required for
capital investment and repayment of debt,' he said.
'The strength of BHP's cash flow means that it can accommodate an increased
capital expenditure program in FY2001 of a projected A$3.5 billion and exceed
its targeted EBITDA interest coverage and book gearing levels of 8.0 times and
40 to 45 per cent respectively.'
BHP had 1,785,946,791 fully paid ordinary shares on issue at 31 December 2000
Further information can be found on our Internet site: http://www.bhp.com
Contact:
MEDIA RELATIONS INVESTOR RELATIONS
Mandy Frostick Dr Robert Porter
Manager Media Relations Vice President Investor Relations
Ph: 61 3 9609 4157 Ph: 61 3 9609 3540
Mob: 61 419 546 245 Mob: 61 418 587 456
Rule 3.8A
Appendix 3C
Announcement of buy-back
(except minimum holding buy-back)
Name of entity ARBN
BHP Limited 49 004 028 077
We (the entity) give ASX the following information.
Information about buy-back
1 Type of buy-back On-market
2 Class of shares which is the subject of the buy-back (eg
ordinary/preference) Ordinary
3 Voting rights (eg one for one) One for one
4 Fully paid/partly paid (and if partly paid, details of how much has been
paid and how much is outstanding) Fully paid
5 Number of shares in the class on issue 1 786 763 991
6 Whether shareholder approval is required for buy-back No
7 Reason for buy-back Capital management purposes
8 Any other information material to a shareholder's decision whether to
accept the offer (eg details of any proposed takeover bid) -
On-market buy-back
9 Name of broker who will act on the company's behalf J B Were & Son
10 Name of each director and related party of a director who reserves the
right to sell shares, and number of shares in respect of which that
director or related party reserves the right -
11 If the company intends to buy back a maximum number of shares - that
number Up to 90 000 000 shares
12 If the company intends to buy back shares within a period of time - that
period of time; if the company intends that the buy-back be of unlimited
duration - that intention Unlimited duration
13 If the company intends to buy back shares if conditions are met - those
conditions -
Employee share scheme buy-back
14 Number of shares proposed to be bought back
15 Price to be offered for shares
Selective buy-back
16 Name of person or description of class of person whose shares are
proposed to be bought back
17 Number of shares proposed to be bought back
18 Price to be offered for shares
Equal access scheme
19 Percentage of shares proposed to be bought back
20 Total number of shares proposed to be bought back if all offers are
accepted
21 Price to be offered for shares
22 +Record date for participation in offer
Compliance statement
1. The company is in compliance with all Corporations Law requirements
relevant to this buy-back.
2. There is no information that the listing rules require to be disclosed
that has not already been disclosed, or is not contained in, or attached
to, this form.
Sign here: Date: 8 February 2001
Secretary
Print name: Roger V Taylor
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