BHP Billiton creates new company for its aluminium section

BHP Billiton, leading global resources company as a part of its internal business reformation created a new aluminium firm through the Australian securities regulator. The creation mainly comes as a part of BHP’s board and management decision to spin off the noncore asset into new firm worth $20 billion, which would be given back to its shareholders.

The new aluminium company was created on May 6 and registered to BHP’s Perth office, Brookfield Place. John Slaven and Stefan Giorgini have appointed as its two directors and Robin Lees is its secretary. The company’s sole shareholder is Brisbane-based Coal Holdings but this is the company which has the ultimate holdings and it is unclear whether the new Aluminium Company keeps any physical assets.

The company has also secured tax exemption from the Australian Tax Office. After years of acquisitions ahead of any strategic decision, BHP Billiton has believed to be undergone a thorough review of its corporate web and legal substructures.

The Chief Executive Andrew Mackenzie said that the compelling for further simplification of the business reigniting the speculations that BHP would bend forward for a spin-off. He added that no decision had been taken yet.

He said in an investor conference, “The simplification would create portfolio of unrivaled quality and be the catalyst for increased and accelerated productivity gain. Value is our priority and we will get it right.”