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Rio Tinto disburses $4.4bn through share buy-back program
Allens have advised Rio Tinto on a $4.4 billion disbursement through a share buy-back program.
Emma Musgrave
Firm: Allens (Rio Tinto)
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Deal: Rio Tinto has made a disbursement of post-tax coal disposal proceeds to shareholders through a share buy-back program.
Value: Approximately $4.4 billion (US$3.2 billion)
Area: Corporate
Key players: Corporate partner Richard Kriedemann and tax partner Martin Fry were lead partners in this transaction, with assistance from corporate special counsel Gadi Bloch and tax senior associate Jay Prasad.
Deal significance: According to a statement from Allens, the team advised on all corporate and tax aspects of the program, which combines an off-market buy-back tender targeting up to 41.2 million Rio Tinto Limited shares with further on-market purchases of Rio Tinto plc shares.
“Completion of the off-market buy-back is expected in November 2018, after which the timing and aggregate maximum consideration of its on-market purchases will be announced,” the firm’s statement said.
“The $3.2 billion ($4.4 billion AUD) of net disposal proceeds is derived from the completed sales of the Hail Creek and Valeria, Winchester South and Kestrel mines, on which Allens also advised.”
Commenting further on the transaction, partner Richard Kriedemann said: “We are pleased to be advising longstanding client Rio Tinto as it continues to provide market-leading returns for shareholders.”
“Off-market share buy-backs continue to have a valuable role to play in delivering efficient capital management for shareholders,” added partner Martin Fry.
