BHP creates new aluminium company as it considers demerger
BHP Billiton has advanced the reorganisation of its internal corporate entities, creating a new company through the Australian securities regulator for its aluminium division as its board and management consider spinning “non-core” assets into a new $20 billion division, according to WA Today.
This new division will potentially be handed back to shareholders.
All options are on the table as BHP evaluates strategies for assets that do not fit within CEO Andrew Mackenzie's four Âpillars agenda. Goldman Sachs is advising the company on the transformative plan, code-named Project River.
BHP Billiton Aluminium (Holdings) was created May 6 and registered to BHP's Perth office, Brookfield Place. It has two directors, John Slaven and Stefano Giorgini, and its secretary is Robin Lees.
Brisbane-based BHP Coal Holdings is its sole shareholder, but BHP is the ultimate holding company and it is unclear whether BHP Billiton Aluminium retains any physical assets.
AGL chief executive Michael Fraser to resign
AGL Energy surprised the market yesterday with the news that chief executive Michael Fraser will retire within 13 months after more than eight years in the job, according to the Sydney Morning Herald.
AGL shares fell as much as 0.7% cent to $15.97 as investors digested the news, which leaves the electricity and gas supplier seeking a replacement from both internal and external candidates.
Fraser, who will complete 30 years' service at AGL this month, will step down by June 30, 2015, the company said in a statement to the stock exchange.
He said this was the right timing for him to retire from executive life.
Fraser steadied AGL after a tumultuous period under his predecessor Paul Anthony, whose 18-month reign included a battle with Western Australia's Alinta, a failed $14 billion merger of equals proposal put to Origin Energy and extensive restructuring that saw about 1000 people lose their jobs.
Baosteel seeks to convince Aquila shareholders to accept bid
China’s Baosteel has warned Aquila investors that the firm’s major assets could continue to be threatened by poor relations with joint venture partners, according to The Australian.
The Chinese state-owned entity, which last week teamed up with Australian rail freight company Aurizon to launch a $1.4 billion bid for Aquila, raised the issue of development risk in its bidder’s statement.
