BHP unified corporate structure commences first JSE trades

Johannesburg Stock Exchange (JSE)

Trading in BHP Group Limited’s shares got underway yesterday on the Johannesburg Stock Exchange (JSE) following the global mining giant’s decision to change its dual public holding into a single listing. 

The unification has resulted in the consolidation of two companies into a single entity, BHP Group Limited.  The BHP Group Limited has a primary listing on the Australian Stock Exchange (ASX), a secondary listing on the JSE, a standard listing on the London Stock Exchange (LSE), and American depositary shares (ADSs) listing on the New York Stock Exchange (NYSE).   

According to BHP, the consolidation will provide a simpler corporate structure that will make BHP more nimble, and an important strategic move to set BHP and its shareholders up for the future.

“Unification will enable the BHP Group to undertake certain transactions such as demergers and equity raisings more simply and efficiently as a result of the BHP Group having a single shareholder base. This will improve the BHP Group’s flexibility to shape its portfolio, with the objective of maximising long-term value for shareholders,” the company said. 

Furthermore, unification will eliminate the share price differential that previously existed between BHP Plc and BHP Limited, whereby London shares generally traded at a lower price than Sydney shares.

Valdene Reddy, Director of Capital Markets at the JSE, congratulated BHP on the consolidation, adding that the company’s retention of its listing signaled confidence in the quality of large companies listed on the JSE and commitment to giving South African investors access to a blue-chip mining company operating across the globe.

“This signifies the importance of the JSE’s deep market with highly liquid shares that give investors global exposure. We wish BHP well on its growth journey,” said Reddy.     

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