MELBOURNE/LONDON: Rio Tinto said on Thursday that 19.35% of its shareholders had voted for a review of the company’s dual-listed structure.
Under UK regulations, a vote of 20% or more would have required the company to consult more widely with shareholders.
Activist investor Palliser Capital has campaigned for Rio Tinto, which is listed in London and in Sydney, to unify the two into a single holding company in Australia.
Palliser argues that doing away with the current structure could unlock $28 billion in value for holders of Rio Tinto’s London shares.
British shareholders in the world’s largest iron ore miner voted at its London AGM on April 3.
The London listing comprises about 77% of Rio Tinto’s investor base, but the Australian-listed shares are trading at a premium of about 25%, partly due to tax advantages available to Australian shareholders.
Rio Tinto’s board had unanimously recommended voting against the resolution, citing tax considerations and saying that a unified listing is not required to provide it with strategic flexibility.
Palliser’s motion was backed by influential proxy adviser firms Institutional Shareholder Services (ISS) and Glass Lewis and more than 100 other shareholders including Norway’s sovereign wealth fund Norges Bank Investment Management.
Rival BHP ended a similar dual-listed structure in 2022 and now has a primary listing in Australia, six years after activist investor Elliott began its campaign for a single listing.
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