BHP Billiton has confirmed that its new company, so-called NewCo, will be listed on the London Stock Exchange.
The new company will be created from BHP’s less-favored assets. Analysts estimate NewCo could be worth around $17 billion.
“We are pleased to offer an additional listing in London in response to the interest investors have shown in the new company. We continue to work towards completion of the demerger in the first half of the 2015 calendar year, subject to receipt of the necessary approvals,” said BHP Billiton Chief Executive Officer, Andrew Mackenzie in a news release.
The mining giant announced in August that it was creating an independent, global metals and mining company based on a selection of its aluminum, coal, manganese, nickel and silver assets.
The proposed spin-off company, to be based in Perth, is set to deliver more value to shareholders. Following the demerger, BHP will be almost exclusively focused on exceptionally large, long-life iron ore, copper, coal, petroleum and potash basins.
The demerger will also allow the company to reduce costs and improve productivity more quickly, resulting in the generation of higher margins, stronger growth in free cash flow and a better return on invested capital.
NewCo is headlined by BHP’s metallurgical coal business in Illwarra, and the Cannington lead-silver mine in Queensland, reports the Sydney Morning Herald.
BHP’s London-listed shares have fallen nearly 20% since it announced its spinoff plan, amid a sharp fall in commodity prices.