1st May 2025 10:44
(Alliance News) - Shareholders in Rio Tinto PLC have rebuffed calls from an activist investor for the global mining group to ditch its dual London listing and focus on Australia.
More than 80% of investor votes cast at its annual general meeting on Thursday were made against the proposal from Palliser Capital, with just 19% made in favour.
It had threatened to deal yet another blow to the beleaguered London market, following BHP Group Ltd's exit and Glencore PLC's move to consider moving its primary listing away from the UK.
On announcing the shareholder vote outcome, Rio Tinto said: "Rio Tinto consulted widely with shareholders of both Rio Tinto PLC and Rio Tinto Ltd on the requisitioned resolution prior to the annual general meetings and received significant support for the board's conclusion that unification of the dual-listed companies structure is not in the interests of shareholders and Rio Tinto as a whole."
The FTSE 100 firm – the world's second biggest mining group behind BHP – added: "Any unification of the dual-listed companies structure under Rio Tinto Ltd would give rise to material issues, including expected tax costs in the mid-single digit billions of US dollars."
Palliser Capital had called on the metals and minerals firm to drop its "outdated" dual listing structure across the London and Sydney financial markets.
The UK-based hedge fund, which has a roughly USD300 million stake in Rio Tinto, has called for it to follow rival BHP, which moved its primary listing to Sydney in 2022.
But investors in both London and Australia rebuffed the plea, with the AGM in Perth on Thursday coming three weeks after UK investors cast their votes, although aggregate results were only published after both meetings had taken place.
More than three-quarters – around 77% – of investors hold UK-listed stock in Rio Tinto, although it makes most of its revenues running mines in Australia.
Rio Tinto shares were 0.9% higher at 4,488.72 pence each on Thursday morning in London, and closed 1.0% lower in Sydney at AUD115.90.
By Holly Williams, PA Business Editor
Press Association: Finance
source: PA
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