https://newsletter.mw.creamermedia.com
Iron Ore
Iron Ore
iron-ore

Rio Tinto shareholders call for resolution on review of dual-listed structure

19th December 2024

By: Reuters

  

Font size: - +

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.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 
VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 07 November 2025
Magazine round up | 07 November 2025
7th November 2025
Resources Watch
Resources Watch
5th November 2025

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.213 0.291s - 185pq - 2rq
Subscribe Now