LONDON, Dec 4 (Reuters) – Rio Tinto CEO Simon Trott said on Thursday the miner is actively working with its main shareholder, Aluminium Corporation of China Limited (Chinalco), to resolve governance constraints that restrict the company’s ability to conduct share buybacks. “In terms of the Chinalco shareholding, we’re actively working with Chinalco on solutions to […]
Business
Rio Tinto actively working with China’s Chinalco on shareholding constraints
Audio By Carbonatix
LONDON, Dec 4 (Reuters) – Rio Tinto CEO Simon Trott said on Thursday the miner is actively working with its main shareholder, Aluminium Corporation of China Limited (Chinalco), to resolve governance constraints that restrict the company’s ability to conduct share buybacks.
“In terms of the Chinalco shareholding, we’re actively working with Chinalco on solutions to address that constraint and what that might look like,” Trott told shareholders at the company’s annual investor day, adding that it will take time and “there’s nothing concrete at this stage.”
Reuters in October reported that Rio Tinto is exploring a potential asset-for-equity swap with Chinalco that would reduce the Chinese investor’s 11% stake, potentially giving Rio greater flexibility to resume buybacks and pursue new strategic deals.
Chinalco’s stake in the London arm of Rio Tinto is subject to a 14.99% ownership cap set by Australian authorities in 2008. Its stake in the overall company is around 11%.
(Reporting by Clara Denina, Melanie Burton; Editing by Joe Bavier)