LONDON, UK / ACCESSWIRE / September 25, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Rio Tinto PLC (NYSE: RIO), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=RIO. The Company announced on September 21, 2017, that it is planning to return the proceeds of the sale of Coal & Allied Industries Ltd to its shareholders through an additional $2.5 billion buy-back, as part of its ongoing share buy-back program. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Off-Market Buy-Back Program
- The returns will be accomplished through an off-market buy-back tender, targeting A$700 million (approximately $560 million) of Rio Tinto Ltd shares, which is expected to be completed in 2017.
- The maximum number of shares that may be repurchased by the Company under the buy-back program is 42.4 million shares.
- The eligible shareholders in Australia or New Zealand are invited to submit their Rio Tinto Ltd shares for sale at a premium to market price.
- Eligible shareholders will also be in a position to select a minimum price below which shares tendered by them will not be bought.
On-Market Buy-Back Program
- The remaining $1.9 billion of additional funds will be allocated to Rio Tinto's existing on-market purchases.
- The on-market program is likely to commence on 27 December 2017 and to be completed no later than 31 December 2018.
- The aggregate maximum consideration available for the on-market program will be announced following the completion of the off-market buy-back tender for the Rio Tinto Ltd shares, which is expected to be on 13 November 2017.
- The maximum number of shares that may be purchased by Rio Tinto under this program is 100 million.
Shareholders Returns Made Possible by Maintaining Strong Balance Sheet
J.S. Jacques, Chief Executive Officer (CEO) of Rio Tinto, stated that returning the $2.5 billion proceeds from the Coal & Allied divestment shows the Company's continued commitment to delivering superior value and returning cash to its shareholders. Jacques also added that the Company had announced cash returns to shareholders of $8.2 billion, comprising $4.2 billion of dividends and $4 billion of share buy-backs for the current year. The CEO further stated that shareholder returns of this scale were made possible by maintaining the strongest balance sheet in the sector and a disciplined capital allocation process.
Buy-back Program Commenced in February 2017
Rio Tinto commenced a US$500 million share buy-back program of Rio Tinto shares on February 08, 2017, which is expected to be completed over the period 01 March 2017 to 31 December 2017. On August 02, 2017, the Company announced cash generation of $6.3 billion and total cash returns to shareholders of $3 billion. The buy-back program is subject to market conditions and compliance with all applicable laws and regulations.
Rio Tinto Divested Coal & Allied in September 2017
As per the news release, on September 01, 2017, Rio Tinto completed the sale of its wholly-owned subsidiary Coal & Allied Industries Ltd to Yancoal Australia Ltd, for a total consideration of $2.69 billion.
Coal & Allied Industries Ltd is engaged in mining, preparing, and marketing coal products in Australia.
About Rio Tinto Ltd
Founded in 1873, Rio Tinto is an Australian-British multinational and one of the world's largest metals and mining corporations. The Company's employees work in around 35 countries across six continents. Rio Tinto is a dual-listed Company trading on both the London Stock Exchange and the Australian Securities Exchange.
Last Close Stock Review
At the closing bell, on Friday, September 22, 2017, Rio Tinto's stock marginally slipped 0.06%, ending the trading session at $47.82. A total volume of 2.01 million shares have exchanged hands. The Company's stock price soared 22.08% in the last three months, 17.09% in the past six months, and 47.05% in the previous twelve months. Moreover, the stock surged 24.34% since the start of the year. The stock is trading at a PE ratio of 13.94 and has a dividend yield of 4.60%. The stock currently has a market cap of $86.82 billion.
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SOURCE: Pro-Trader Daily