Rio Tinto urges shareholders to reject Palliser’s bid to review dual listing

The Board of Rio Tinto (ASX, LON: RIO) recommended on Wednesday that shareholders vote against London-based hedge fund Palliser Capital’s resolution to review the company’s dual listings in London and Sydney.In a statement, the miner said it had already conducted a “robust and comprehensive review of the structure” and had engaged with various stakeholders, including Palliser.“A unification of the dual-listed companies (DLC) structure is not required to provide the group with strategic flexibility,” Rio Tinto stated.“Unifying the DLC would be value-destructive for the group and its shareholders.”As of 10:47 AM in New York, shares of Rio Tinto were down 0.85%, giving the company a market capitalization of $103.3 billion.Rio Tinto’s annual shareholder meetings are scheduled for April 3 in London and May 1 in Australia.In December, Palliser Capital urged Rio Tinto’s chair to abandon its primary London listing and consolidate its corporate structure into a single Australian-domiciled company.According to Palliser, unification would strengthen the company’s share price. However, Australian shareholders argue that such a move would erode value.Rio Tinto currently has approximately 371.2 million shares listed on the Australian Stock Exchange and 1.25 billion shares on the London Stock Exchange.Palliser, which holds about $300 million in Rio Tinto shares across both listings, has campaigned for nearly a year to consolidate the miner’s primary listing in Australia, arguing that the dual-listed structure has cost investors $50 billion in value.Rio Tinto has operated under a dual listing since December 1995 and has consistently resisted calls for change.A review conducted by the company last year concluded that its dual-listed company (DLC) structure remains effective and continues to benefit both the company and its shareholders.BHP, facing pressure from activist investors, ended a similar dual-listing structure in 2022 and now has a primary listing in Australia.London’s shrinking marketA move by Rio Tinto to unify its structure would deal another blow to the FTSE 100—London’s benchmark index of the largest listed companies.The London Stock Exchange is already grappling with a decline in listings and an exodus of major corporations. Auditing giant EY reported that 88 companies delisted or transferred their primary listing from London’s main market last year, the highest number since 2009.Swiss miner and commodities trader Glencore (LON: GLEN) added to concerns in January by announcing it was considering shifting its primary listing to New York or another venue where it could achieve better valuation.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com