Photo by: Bloomberg
PERTH (miningweekly.com) – Diversified major Rio Tinto on Thursday provided more details of the $1-billion share buyback programme, announced in its interim results a day earlier.
The $1-billion buyback is in addition to the $500-million buyback programme announced in February this year. Some $300-million of the original buyback has been completed.
Rio told shareholders that the aggregate $1.2-billion of the remaining buy-back would be completed between August and December this year, and was aimed at reducing the share capital of the company. All shares purchased would be cancelled.
The aggregate maximum consideration payable to purchase these shares has been set at $1.5-billion, and Rio has capped the maximum number of shares for repurchase at 137.49-million.
The company has entered into separate nondiscretionary irrevocable instructions with Deutsche Bank, London Branch and JP Morgan in relation to the purchase of the shares for an aggregate maximum consideration of up to $1.2-billion.