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Rio Tinto reports that 19.35% of its shareholders voted in favor of dual listing review

Rio Tinto announced on Thursday that 19,35% of shareholders voted in favor of a review of their dual-listed company structure.

According to UK regulations, the company would have been required to consult with more shareholders if a vote was cast of more than 20%.

Palliser Capital, an activist investor, has been campaigning for Rio Tinto to merge the London-listed and Sydney-listed companies into one holding company in Australia.

Palliser claims that removing the current structure would unlock value of $28 billion for Rio Tinto London shareholders.

The AGM in London on April 3 was a vote by British shareholders of the world's biggest iron ore mining company.

About 77% of Rio Tinto investors are listed in London, but Australian-listed shares trade at a 25% premium, largely due to the tax benefits available to Australian shareholders.

Rio Tinto’s board unanimously recommended that the company vote against the resolution. They cited tax concerns and said a unified list is not necessary to give it strategic flexibility.

Palliser’s motion received the support of influential proxy advisory firms Institutional Shareholder Services and Glass Lewis, as well as more than 100 shareholders, including Norway’s sovereign wealth fund Norges Bank Investment Management.

BHP, the rival company, ended a dual-listed structure similar to that of BHP in 2022. It now has an Australian primary listing six years after activist Elliott started its campaign for one listing.

(source: Reuters)