Ann: Merger update and details of Woodside share distribution, page-52

This is the way I see this. As you will see at the end I don't see how it can be correct.

1. BHP sells some assets to WPL.

2. WPL pays for these assets by issuing its WPL shares to BHP.

3. BHP doesn't want these shares so it gives them, pro rata, to it's existing BHP shareholders, by way of a franked in specie dividend.

4. BHP now no longer has the assets (which have gone to WPL), and it no longer has the payment WPL shares from WPL which BHP has given pro rata to it's own BHP shareholders. Every BHP shareholder now has a stake in WPL through each BHP shareholder's own WPL shares.

5. In summary, BHP in effect has given away certain assets to another company (WPL) for no consideration. (What consideration it did get (the WPL shares) it passed on to it's own BHP shareholders).

6. My understanding of this matter, as set out above, does not make sense to me. Could some poster, who really understands what is happening, please enlighten me. I am not in this instance after the nitty gritty eg number of shares, market caps etc, but the broad outline similar to how I have tried to put it above.

I also hold WPL.


Thank you
Athos