Rio Tinto’s rights offer has been a big success in the UK, with shareholders taking up 96.97% of the London shares offered, raising around 7.1 billion pounds.
Following this news, major shareholder Chinalco announced it would also take up its full entitlement.
The results of the Australian rights issue are not yet known.
The Rio share price was up this morning on market open:
ASX Code: RIO
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For more details on this news story:
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Chinalco, metals and mining, Rio rights issue, rio shareholders, Rio Tinto
According to The Australian, Rio Tinto is now putting out feelers to institutional investors regarding replacing the controversial Chinalco bond issue with a capital raising, underwritten by Chinalco.
The change of heart seems to be a result of shareholder feedback, including the vocal UK institutional investors, and has brought Rio to the point of indicating to Chinalco that a change to parts of the $19.5 billion deal is necessary. Chinalco is thought to be resigned to some changes, though will not compromise on the arrangements giving it stakes in mining assets.
None of the report’s claims have been confirmed by either party, but the share price jumped up $2.62 yesterday.
ASX Code: RIO
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To read the full article in The Australian, click here.
Finance News Today
ASX News, bond issue, Business News, Capital Raising, Chinalco, RIO, rio shareholders, Rio Tinto