Treasury Stock

RNS Number : 7447Z
Rio Tinto PLC
23 July 2008
 








Rio Tinto plc

Internal Capital Management Transactions

23 July 2008





As part of the Rio Tinto Group's internal capital management programme, Rio Tinto intends to undertake a series of transactions whereby shares currently held by Rio Tinto plc in treasury will be sold to Rio Tinto Limited at market value before being immediately repurchased by Rio Tinto plc for an aggregate amount of £5 pursuant to the share purchase approval granted by Rio Tinto plc shareholders at the 2008 Rio Tinto plc Annual General Meeting. The shares will be cancelled upon their repurchase by Rio Tinto plc.


It is immaterial to the shareholders of either Rio Tinto plc or Rio Tinto Limited if Rio Tinto Limited or any of its subsidiaries make a gain or a loss on such transactions as they have no effect on the Rio Tinto Group's overall resources. The underlying purpose of these proposed transactions is to facilitate the Rio Tinto Group's ongoing capital management programme and Rio Tinto considers that the transactions will not constrain its ability to maintain its progressive dividend policy and will not affect Rio Tinto Limited's capacity to fully frank its dividends. 


The number of Rio Tinto plc ordinary shares in issue for the purpose of Rule 2.10 and Rule 8 of the Takeover Code will increase temporarily each time shares are sold out of treasury to Rio Tinto Limited, but this increase will be reversed immediately when the relevant shares are repurchased and cancelled. 


The UK Takeover Panel has agreed that disclosures of dealings under Rule 8 of the Takeover Code should continue to be made on the basis of Rio Tinto plc's issued ordinary share capital of 998,066,058 shares (excluding shares held in treasury), disregarding the temporary effect of the transactions referred to above.


As an initial step in this programme, Rio Tinto plc will today sell 6,671,547 ordinary shares out of treasury to Rio Tinto Limited at a price of 5,108 pence per share, resulting in the number of Rio Tinto plc shares in issue (other than shares held in treasury) increasing from 998,066,058 to 1,004,737,605. Rio Tinto plc will immediately repurchase those shares from Rio Tinto Limited at an aggregate price of £5 and cancel them, whereupon the number of Rio Tinto plc shares in issue (other than shares held in treasury) will revert to 998,066,058. There will be no overall effect on the number of Rio Tinto plc shares in issue, other than a reduction in the number of ordinary shares held in treasury by Rio Tinto plc to 67,132,300.



About Rio Tinto


Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.


Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa. For further information, please contact:


Media Relations, London


Nick Cobban

Office: +44 (0) 20 7781 1138

Mobile: +44 (0) 7920 041 003

Media Relations, Australia

Ian Head

Office: +61 (0) 3 9283 3620

Mobile: +61 (0) 408 360 101


Amanda Buckley

Office: +61 (0) 3 9283 3627

Mobile: +61 (0) 419 801 349

Investor Relations, London

Nigel Jones

Office: +44 (0) 20 7781 2049

Mobile: +44 (0) 7917 227 365


David Ovington

Office: +44 (0) 20 7781 2051

Mobile: +44 (0) 7920 010 978


Investor Relations, Australia

Dave Skinner

Office: +61 (0) 3 9283 3628

Mobile: +61 (0) 408 335 309

Investor Relations, North America

Jason Combes
Office: +1 (0) 801 685 4535

Mobile: +1 (0) 801 558 2645 

Email: questions@riotinto.com



Website: www.riotinto.com

High resolution photographs available at: www.newscast.co.uk



This information is provided by RNS
The company news service from the London Stock Exchange
 
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