Rio Tinto share buy-back programme

RNS Number : 4906R

Rio Tinto PLC

21 September 2017

 

 

Rio Tinto plc share buyback programme

 

21 September 2017

Rio Tinto today announced that it will commence an additional $2.5 billion share buy-back programme, returning the proceeds of the sale of Coal & Allied to its shareholders.

The capital return programme will be executed through a combination of an off-market buy-back tender, targeting A$700 million (approximately $560 million) of Rio Tinto Limited shares, with the balance of approximately $1.9 billion of additional funds being allocated to Rio Tinto's existing on-market purchases of Rio Tinto plc ordinary shares of 10 pence each (the "Programme").

Today's announcement brings the total Rio Tinto share buy-backs announced during 2017 to $4 billion, comprising the $2.5 billion committed today and the $500 million and $1 billion on-market share buy-back programmes of Rio Tinto plc shares, announced on 8 February 2017 and 2 August 2017.

The new on-market purchases by Rio Tinto plc will commence on 27 December 2017 and will be completed no later than 31 December 2018.  The maximum number of shares that may be purchased by Rio Tinto plc under the Programme is 100 million.

As part of the on-market portion of the Programme, Rio Tinto plc has today entered into a separate non-discretionary irrevocable instruction with J.P. Morgan Securities plc, acting as riskless principal, in relation to the purchase of its ordinary shares and making trading decisions concerning the purchase of Rio Tinto plc's ordinary shares independently of the Company, for the period between 27 December 2017 and 28 February 2018, for an aggregate maximum consideration of up to $300 million.

Any purchases of Rio Tinto plc shares under the above irrevocable instruction will be effected within certain pre-set parameters, and in accordance with its general authority to repurchase shares granted by its shareholders at the annual general meeting of Rio Tinto plc on 12 April 2017, Chapter 12 of the UK Listing Authority Listing Rules and the provisions of the Market Abuse Regulation 596/2014/EU dealing with buy-back programmes. The purpose of the Rio Tinto plc share buy-back is to reduce the share capital of Rio Tinto plc and accordingly all shares purchased will be cancelled.

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Media Relations Illtud Harri T [phone] M [phone] David Outhwaite T [phone] M [phone] David Luff T [phone] M [phone] Investor Relations, United Kingdom John Smelt T [phone] M [phone] David Ovington T [phone] M [phone] Nick Parkinson T [phone] M [phone]	Investor Relations, Australia Natalie Worley T [phone] M [phone] Rachel Storrs T [phone] M [phone]
Rio Tinto plc 6 St James's Square London SW1Y 4AD United Kingdom T [phone] Registered in England No. 719885	Rio Tinto Limited 120 Collins Street Melbourne 3000 Australia T [phone] Registered in Australia ABN 96 004 458 404

 

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