LONDON--Mining giant BHP Billiton is considering a secondary
listing in London for a new company it is spinning off containing
noncore mining assets in commodities including aluminum and
manganese, according to an extract from a letter sent to
shareholders ahead of its annual general meeting.
The spun-off company, so far known only as NewCo, is currently
planned to have a primary listing in Australia and a secondary
listing in South Africa.
That plan had drawn criticism from some London-based
shareholders who were set to receive shares in NewCo. Fund managers
often have mandates restricting them from investing in companies
listed overseas.
BHP Billiton said it had been "pleased" by the level of support
for its demerger plan so far.
"Based on this, we are now assessing a potential Standard
listing in London for the new company," the coampny said in its
letter to shareholders.
If NewCo obtains a standard listing, it wouldn't be eligible for
inclusion in the FTSE 100 share index, which only includes
companies with a premium listing.
NewCo could have a valuation of around A$16 billion, according
to analysts at Commonwealth Bank of Australia.
Write to Andrew Peaple at andrew.peaple@wsj.com
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