Mining giant Rio Tinto (RIO, Financial) has expressed its support for maintaining its dual listing structure and has urged shareholders to vote against a resolution proposed by London hedge fund Palliser Capital. This resolution calls for a review of the company's dual listing status in London and Sydney. Rio Tinto, the world's largest iron ore producer, stated that it has conducted a comprehensive review of this structure and engaged with various stakeholders, including Palliser.
Rio Tinto emphasized that a unified dual-listed company (DLC) structure is not necessary for strategic flexibility. The company believes that altering its current listing structure would harm its value and that of its shareholders. Rio Tinto has scheduled its annual shareholder meetings for April 3 in London and May 1 in Perth, Australia.
In December, activist investor Palliser Capital, along with over 100 other shareholders, proposed a resolution to review Rio Tinto's dual listing model, advocating for the company to maintain its listing solely in Australia. They argue that this move would boost the company's stock price. However, Australian shareholders are not in favor, as they believe it would erode the company's value.
Notably, rival company BHP (BHP) ended its similar dual listing structure in 2022, opting to primarily list in Australia under pressure from activist investors.
