Rio Tinto’s $3.2 Billion share buy-back

Allens has advised Rio Tinto on its disbursement of approximately US$3.2 billion (AU$4.4 billion) of post-tax coal disposal proceeds to shareholders through a share buy-back program.

On 20 September 2018, Rio Tinto unveiled the details of how it intends to return approximately $3.2 billion of post-tax coal disposal proceeds to its shareholders.

The proceeds will be returned through a $3.2 billion share buy-back programme, combining an off-market buy-back tender targeting up to 41.2 million Rio Tinto Limited shares and further on-market purchases of Rio Tinto plc shares. The Programme is subject to market conditions and compliance with all applicable laws and regulations.

Rio Tinto chief executive J-S Jacques said “Returning $3.2 billion of coal disposal proceeds demonstrates our commitment to capital discipline and providing sector leading shareholder returns. We continue to focus our portfolio on those assets which provide the highest returns and growth, which will ensure that we continue to deliver superior value to our shareholders in the short, medium and long term”.

This is in addition to ongoing Rio Tinto plc on-market share buyback programmes of US$1 billion announced on 1 August 2018, US$ 1 billion announced on 7 February 2018 and US$1.925 billion of the $2.5 billion share buy-back programme, returning the proceeds from the sale of Coal & Allied announced on 21 September 2017.

Allens advised with a team including Richard Kriedemann (lead Partner), Gadi Bloch (Corporate), Martin Fry and Jay Prasad (Tax)


Involved fees earner: Richard Kriedemann – Allens; Gadi Bloch – Allens; Martin Fry – Allens; Jay Prasad – Allens;

Law Firms: Allens;

Clients: Rio Tinto Group;




Author: Michael Patrini