Thursday, May 26, 2022

Mining giant BHP to exit the FTSE 100 after an investor vote

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The mining giant BHP is coming out of the FTSE 100 as investors have approved plans to abandon the Anglo-Australian dual structure and move the stock exchange listing to Sydney.

  • More than 97 percent of London shareholders voted in favor of the plans
  • As of January 31, BHP Group will merge this dual company structure
  • He will move the main listing to Sydney while maintaining the standard in London


The FTSE 100 index will lose its largest company after Anglo-Australian mining giant BHP investors approved plans to abandon the group’s dual listing and move the main stock market listing to Sydney.

More than 97 percent of London shareholders voted in favor of the plans, which were announced in August last year.

The move, approved by 96 per cent of proxy votes at a previous meeting in Australia, is expected to lead to a wave of sales in London and even bigger purchases in Sydney.

Upcoming changes: BHP investors support the company’s plan to abandon dual listing

The BHP group includes two companies – BHP Ltd, registered in Sydney, and BHP Plc, registered in London.

But as of Jan. 31, the company will merge this dual-listed company structure, with its main stock market listing being moved to Sydney.

BHP shares will continue to be registered in the UK, but as an Australian business and under standard listing.

Nothing will change for investors who own a stake in a UK company – they will have the right to exchange their shares for those in an Australian company and “dividend policy and the ability to distribute franc loans will not change,” BHP said.

The London-listed shares of BHP in the FTSE 100 index account for 42% of the total registry division between London and Sydney.

But analysts expect the changes to indicate that many of the shares registered in the UK will be sold by funds.

John Lokton, head of Australian equities at Wilsons Advisory in Sydney, told Acesparks he expected the Sydney purchase would “lead to a forced sale” in London.

“I think it usually happens on the same day, but after (Thursday) voting, some people try to vote in advance,” he added.

In a report submitted by BHP, the consulting firm Grant Samuel estimated that the deal could lead to the sale of about 140 million shares listed on the London list – £ 3.5bn at Wednesday’s closing price.

Wilsons estimates it will buy between 90 million and 250 million shares in Sydney.

BHP is not the first company to abandon its dual structure – Unilever did the same last year and chose London above Amsterdam.

Many companies are listed on two or more stock exchanges around the world. But most choose a second listing to attract shareholders.

“We are constantly striving to simplify and improve our corporate and governance processes,” BHP said as it announced its plans last year.

“Unification will further simplify BHP’s corporate structure and shareholder register, reduce duplication, and simplify our management and internal processes.”

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