Rio Tinto shareholders call for resolution on review of dual-listed structure
Activist investor Palliser Capital and over 100 other shareholders on Thursday sought a resolution over a review of Rio Tinto's RIO.AX dual-listed model, in a bid to unify the miner's corporate structure.
Earlier this month, UK-based Palliser pushed Rio Tinto to abandon its primary London listing and unify its corporate structure in Australia, saying about $50-billion in shareholder value has already been lost due to the current dual-listed setup.
On Thursday, Palliser informed Rio Tinto's board that the proposed resolution, which will be submitted at the miner's next Annual General Meeting on January 16, aims to give shareholders access to independent information and evaluate the current ownership structure.
The resolution seeks to determine whether maintaining the current structure is preferable to unifying the company, the hedge fund said.
Palliser's initial proposal to unify Rio Tinto's dual-listed structure garnered widespread support from stakeholders, analysts, and investors across Australia and the UK, the hedge fund said.
Earlier in December, in a letter, Palliser questioned the rationale for maintaining the UK-listed entity Rio Tinto Plc's structural hierarchy.
The letter highlighted several concerns, including the entity's inability to support dividends independently, minimal UK-based employees, and its limited contribution to the group's earnings before interest, taxes, depreciation, and amortisation, as well as its significant trading discount compared to the Australian-listed entity, Rio Tinto Ltd.
"In our view, it is, in fact, incumbent on management to now fully and transparently justify to the investor community exactly why Rio Tinto is immune from all of the globally-accepted inefficiencies of a dual listed company structure," Palliser Capital said.
Rio Tinto, the world's biggest iron ore producer, did not immediately respond to a Reuters request for comment.
Comments
Research Reports
Latest Multimedia
Latest News
Showroom
In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.
VISIT SHOWROOM
BOVA cemented their reputation in Africa by delivering high quality engineering through their range of safety footwear. 21 years after producing...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
