Rio Tinto asked to end “value destructive” structure

LONDON-based hedge fund Palliser Capital published a letter sent to the chair of Rio Tinto in which it asked the group to take further steps towards ending its dual-listed structure which sees shares traded in the UK and Australia.Citing the letter, Reuters said it highlighted the findings of an appraisal report by Grant Thornton Australia, which identified a share price disparity between the UK and Australian listings.Chief among its criticisms of Rio Tinto’s structure was how it prevented the company from issuing shares in order to finance major merger and acquisition activity. Of $55bn in Rio Tinto deal-making since 1995, none had been financed with shares, the newswire said.Palliser Capital also drew attention to the cost of running two listings and holding two annual general meetings on April 3 in London and another in Perth on May 1.At these AGMs shareholders will vote on a resolution proposed by Palliser Capital and more than 100 shareholders, urging a review of the current structure, which the fund has described as inefficient and “value destructive.”Palliser also suggested that unification could enhance dividend franking capabilities within the company’s payout targets.Palliser’s move follows similar actions by larger rival BHP which, after facing pressure from activist investors, eliminated its dual-listing structure in 2022 and now primarily lists in Australia, said Reuters.The post Rio Tinto asked to end “value destructive” structure appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com