Rio Tinto Urges Shareholders to Reject Proposal for Listing Structure Review

Rio Tinto (LON:RIO) (ASX:RIO) has reaffirmed its commitment to its dual-listed structure and urged shareholders to oppose a resolution calling for a review of its listing framework. The mining giant stated on Wednesday that the proposal, led by Palliser Capital and other investors, seeks to assess whether unifying Rio Tinto’s dual listings under an Australian-based entity would enhance shareholder value.

The company’s board dismissed the resolution, emphasizing that a recent comprehensive review—conducted with input from external advisers—concluded that unification would be value-destructive. Rio Tinto highlighted potential inefficiencies and significant tax implications that could arise from restructuring, arguing that the current framework remains the best option for long-term shareholder returns.

The resolution will be presented at Rio Tinto’s annual general meetings in April and May. The company asserted that claims suggesting its dual-listed structure diminishes shareholder value are unfounded. The board strongly recommended that investors vote against the proposal, reinforcing confidence in its existing listing framework.

Rio Tinto’s position aligns with its strategic focus on stability and efficiency, aiming to maintain its competitive edge in the global mining sector.