15th Aug 2018 18:02
LONDON (Alliance News) - Rio Tinto PLC is seeking to sell its majority stake, worth GBP4.7 billion, in Iron Ore Company of Canada, Sky News reported on Wednesday.
According to the news agency, the Anglo-Australian mining company has hired investment bank Credit Suisse to conduct an auction for the stake, as it seeks to take advantage of a rebound in the commodity's value.
The miner, which owns a 58.7% stake in the Canadian company, is also considering an initial public offering on the Toronto Stock Exchange for Iron Ore Company of Canada, on which Royal Bank of Canada has been hired to advise, Sky News added.
Sky News reported that sources close to Rio Tinto said that if the sale goes ahead, the company could used the proceeds to target smaller acquisitions.
Rio Tinto shares closed down 3.3% at 3,649.50 pence each on Wednesday.
https://news.sky.com/story/rio-tinto-approaches-bidders-for-6bn-canadian-iron-ore-stake-11473410
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