BHP planning to sell non-core assets

BHP planning to sell non-core assetsMining giant, BHP might be considering several strategic options to spin off its non-core business in order to create a new firm, according to people closer to the matter.

It is believed that the company is planning to create a new $20 billion resources company with its non-core businesses. A team of company officials, being advised by Goldman Sachs are evaluating various options including demerger and individual asset sales in order to create a new firm.

Officials indicated that the company has not taken any decision on the matter yet and the project, named "Project River" has been running for a year without an outcome. However, the company is now considering options as the senior BHP executives are aiming to create a new firm and might also list the firm on the Australian, London and South African stock exchanges.

BHP said in a statement to the Australian Securities Exchange that, "We continue to actively study the next phase of simplification, including structural options, but will only pursue options that maximise value for BHP Billiton's shareholders. Any course of action remains subject to detailed review and an assessment of alternatives."

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