Oil giant BHP announced plans to return $10.4 billion to its shareholders through a program combining an off-market buyback and a special dividend.
According to the press release, the company will start with an off-market buyback of $5.2 billion of BHP Billiton Limited shares, under which it can buy back shares at up to a 14% discount. The special dividend will be paid from the net proceeds from the sale of its Onshore United States assets to BP Plc, which is expected to be $5.2 billion.
"We made a commitment that all the net proceeds from the disposal of our Onshore US assets would be returned to shareholders and we are honoring that commitment now that the sale transactions have been completed," CEO Andrew Mackenzie said.
