Dual structure: Mining giant Rio Tinto is listed in London and also trades on the Sydney exchange
Rio Tinto has rejected calls from an investor to abandon its UK listing and focus on Australia, giving a boost to the London Stock Exchange.
The mining giant is listed primarily in London and also trades shares on the Sydney exchange.
But activist investor Palliser Capital had urged the group to unify the corporate structure in Australia and abandon the London listing. Palliser also argued that the miner’s dual structure was a barrier to acquisitions and had led to Rio Tinto’s shares trading at a £24bn discount to their Australian price.
But chief executive Jakob Stausholm told the Wall Street Journal yesterday: “It is very clear that it does not make economic sense to unify Rio Tinto. Our conclusion is that it would destroy value.”