BHP assures on assets

Press, 23 January 1988, Page 29

BHP assures on assets

NZPA-AP Canberra Federal Resources Minister, Senator Peter Cook, said he had received assurances from management of Broken Hill Pty Co, Ltd, (BHP) that Thursday’s announced shareholding changes and planned asset sales would not involve its core minerals, steel and petroleum assets.

Mr Cook said in a statement the assurances were given before the announcement and he welcomed them. He said he intended to discuss BHP’s petroleum and minerals projects with company management next week to clarify

its new position and to confirm his understanding of its plans. The company announced on Thursday its major shareholders had agreed to a restructuring which would cut the shareholding of Robert Holmes a Court’s Bell Resources, Ltd, in BHP from 30 per cent to 10 per cent.

BHP will also form a joint venture with John Elliott’s Elders IXL, Ltd, to hold Elders’ 19 per cent stake in BHP. The company said it would dispose of sAustl billion worth of nonstrategic assets and investments to fund the arrangement. BHP said the agreement with Bell Resources and Elders would enable it to concentrate on its core businesses.