Rio Tinto urges shareholders to oppose review into listing structure
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The news: The board of mining giant Rio Tinto has urged shareholders to vote down a proposal by activist investor Palliser Capital to review a possible unification of the miner’s dual-listed structure.
The context: In an ASX release, Rio Tinto said its board unanimously recommends shareholders vote against the resolution at the company's upcoming annual general meeting, saying that it has already reviewed the option to unify its dual-listed structure with five external advisers, "the conclusions of which are clear".
The ASX- and London-listed miner said the move would be "value destructive" for the group and its shareholders. It noted that claims about "USD50 billion of value erosion" due to the company's current structure are "unfounded and misleading".
The proposal was brought by UK investor Palliser Capital, which called on the board to form a committee of independent directors to examine the benefits to shareholders.
Last year, Palliser Capital pushed for Rio Tinto to abandon its London listing and focus on strengthening its corporate structure in Australia.
The source: ASX
