Rio completes first stage of $3.2bn share buy-back

Global miner Rio Tinto completed a A$2.8-billion off-market share buy-back, purchasing some 41.2-million shares at a price of A$69.96 each, representing a discount of 14% to the market price.

The share buy-back, which was announced in September, forms part of a $3.2-billion share buy-back programme returning proceeds from the sale of coal assets.

“We are delighted to be returning $2.1-billion to our Rio Tinto shareholders through this off-market buy-back. Strong demand has enabled us to return the maximum amount, and at a discount of 14%. The remaining $1.1-billion of funds will be returned through our ongoing buy-back of Rio Tinto shares,” said Rio CEO Jean-Sebastian Jacques.

“In 2018, we have announced cash returns to shareholders of $6.4-billion. Our strategic focus, with disciplined allocation of capital, is ensuring that we continue to deliver superior returns to our shareholders in the short, medium and long term.”

All shares purchased will be cancelled.

Source: miningweekly