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Commodity falls cloud BHP spin-off

Ahead of the vote on the planned demerger, BHP Billiton released a third-quarter update, including details of a project deferral in Western Australia.
April 28, 2015

â–  Imminent vote on South32 spin-off

â–  Project deferral at Port Hedland export terminal

â–  Third-quarter production update

IC TIP: Hold at 1555p

Next week, shareholders in BHP Billiton (BLT) will vote on whether to approve the planned spin-off of South32, an entity comprised of the group's non-core aluminium, coal, nickel, and zinc assets. If approved, shareholders will receive one South32 share for each group share currently held, with holders of 10,000 shares or fewer entitled to a cash option. All very straightforward, but there are mixed views as to whether the deal will unlock value for shareholders.

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