Rio Tinto (NYSE:RIO)
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2 Years : From Oct 2017 to Oct 2019
By Robb M. Stewart
MELBOURNE, Australia--Rio Tinto (RIO) unveiled plans to buy back a swath of its Australia-listed shares before the end of the year as part of its move to return about $3.2 billion in proceeds from the sale of coal assets to its shareholders.
The global mining company said Thursday it was targeting the purchase of up to 41.2 million Rio Tinto Ltd. shares in 2018 through an off-market program valued at roughly $1.9 billion. The timing and maximum price of the latest round of buybacks will be announced following a tender process set to complete by mid-November.
It comes on top of an ongoing program to buy back London-listed Rio Tinto PLC shares, where the company said it has A$1.7 billion still to repurchase by no later than Feb. 27.
The cash comes from the sale of the company's Hail Creek and Valeria coal operations, and Winchester South and Kestrel mines. The agreed sale of its Aluminium Dunkerque smelter in northern France for $500 million is yet to be completed, and Rio Tinto said it expects to announce plans for returning that money to shareholders when it releases its full-year results.
The world's second-biggest miner by market value, behind BHP Billiton Ltd. (BHP), recorded a profit of $4.38 billion for the six months through June, its most profitable half since 2014 and up from $3.31 billion a year earlier. Management in August pledged to hand back about $4 billion after taxes to shareholders, but had yet to decide on the timing and method.
Write to Robb M. Stewart at email@example.com
(END) Dow Jones Newswires
September 19, 2018 19:55 ET (23:55 GMT)
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