South32 to return additional $500 million to shareholders


South32 Limited today, 27 March 2017, announced that it intends to return an additional $500 million to shareholders, equating to 4.5% of the Group’s current market capitalization.

This capital management program, which complements the Group’s dividend policy, will initially take the form of an on-market share buy-back in Australia.

“The combination of our operating leverage, strong balance sheet and simple capital management framework is designed to maximise returns and reward shareholders as financial performance improves. Today’s announcement further demonstrates our disciplined approach to capital management and our confidence in the Group’s cash generating capacity,” says David Crawford, South32 Chairman.

“Our net cash balance continues to build giving us the financial strength and flexibility to invest in our existing operations, pursue opportunities where we can create value and return excess capital to shareholders. This $500 million capital management program meaningfully increases shareholder returns and follows the recent announcement of our US$192M interim dividend,” says Graham Kerr, South32 Chief Executive Officer.

The $500 million capital management program is expected to be completed over a 12 month period and all alternatives will continue to be assessed to ensure this capital is returned in an efficient manner.


About Author

Thabo Mphahlele is the BizNis Africa Head of Sales and Marketing. Mphahlele was previously MultiChoice Production Support Analyst responsible for developing and monitoring applications. In addition, Mphahlele develops and automates batch scripts and is responsible for the daily infrastructure maintenance at MultiChoice. As a Production Support Analyst, he is responsible for incident analysis solving , developing and constructing business reports for SQL and Oracle and implement change controls for the business. Additional responsibility includes monitoring system performance via SOA, Kibaba (Elasticsearch), H.P BSM, HP Sitescope. Mphahlele is responsible for creating infrastructure performance reports through HP Ops Analytics, monitoring payments via Splunk and in-house built-in tool and disaster recovery simulation and testing. At Nashua Mobile, he was responsible for application development and enhancing the web sites At South West Gauteng College, he was the IT Technician and Network Administrator. During his tenure at Double Digit Media, he was he focused on application and web site development for new and existing clients Mphahlele contributes as a Content Manager for BizNis Africa.

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