The BHP Group Ltd (ASX: BHP) share price closed on the back foot on Thursday. Shares in the mining giant tumbled more than 5% for the second day in a row following its announcement of significant business reshaping.
At market close, the BHP share price is 6.14% lower to $44.77 apiece. That means shareholders are now down roughly 18% from the 52-week high that was set earlier this month.
Some shareholders have shared great disappointment with the dual-listed company’s plan to do away with its spot on the London Stock Exchange.
What it means for the BHP share price?
Coming back home
In its preliminary report, BHP shared its intentions to simplify its corporate structure by doing away with its current dual listing.
Currently, BHP shares hold a main listing on both the Australian Stock Exchange and the London Stock Exchange (LSE). This eventuated after BHP merged with South African mining company, Billiton, back in 2001.
As a result, BHP Group has come to be an integral part of the FTSE 100 Index in London over the years gone by. Delisting from the LSE would automatically trigger the iron ore miner’s removal from the index.
The announcement has left some UK investors shocked and saddened to be potentially losing what has become a staple of many portfolios. However, CEO Mike Henry reassured investors abroad that there will remain a secondary listing on the LSE, clarifying BHP will only be unifying its main listings.
In the report, BHP highlighted the unification of BHP shares is particularly attractive from a cost perspective. The company expects the simplification to reduce duplication as well as streamline governance and internal processes.
Additionally, management believes now is an ideal time for the unification process. The reason being is the expected costs of moving to one main listing are now between US$400 million to US$500 million. Previously, the estimated costs came to around US$1.2 billion.
Where to next?
The unification proposal still requires approval. However, if it proceeds, BHP will likely delist from the London Stock Exchange in the first half of the 2022 calendar year.
The post What could delisting from the LSE mean for BHP shares? appeared first on The Motley Fool Australia.
Should you invest $1,000 in BHP Group right now?
Before you consider BHP Group, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP Group wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
- Why BHP, Codan, IGO, & Origin shares are dropping
- Here are the top movers on the ASX 300 today
- BHP (ASX:BHP) share price slides 7% to a 5-month low
- What you need to know about the BHP (ASX:BHP) dividend dates in 2021
- Which shares topped ASX 200 (ASX:XJO) trading volumes on Wednesday
Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3iZrJR3