Rio Tinto has successfully completed its off-market buy-back, achieving its share purchase target of approximately 41.2 million Rio Tinto shares, for a total consideration of A$2,871 million (US$2,081 million1).
The buy-back price was A$6
9.69 per share which represented a discount of 14 per cent to the market price.
“We are delighted to be returning US$2.1 billion to our Rio Tinto Limited shareholders through this off-market buy-back. Strong demand has enabled us to return the maximum amount, and at a discount of 14 per cent,” said Rio Tinto chief executive J-S Jacques.
He said the remaining US$1.1 billion of funds will be returned through our ongoing buy-back of Rio Tinto plc shares.
“In 2018 we have announced cash returns to shareholders of US$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.”
Rio Tinto buy-back was announced to the Australian Securities Exchange (ASX) on 20 September 2018 as part of a US$3.2 billion share buy-back programme, returning the post-tax proceeds from the sale of coal assets in 2018 to Rio Tinto shareholders.
Rio Tinto Limited bought back 41,198,134 shares, at an aggregate cost of A$2,871 million (US$2,081 million), representing 9.99 per cent of Rio Tinto’s issued ordinary shares.
However, due to the significant oversubscription for the buy-back, a 58.27 per cent scale back of tenders was required. All proceeds due under the buy-back will be paid in Australian dollars.