Treasury Stock

RNS Number : 7447Z

Rio Tinto PLC

23 July 2008

 



Rio Tinto plc

Internal Capital Management Transactions

23 July 2008

As part of the Rio Tinto Group's internal capital management programme, Rio Tinto intends to undertake a series of transactions whereby shares currently held by Rio Tinto plc in treasury will be sold to Rio Tinto Limited at market value before being immediately repurchased by Rio Tinto plc for an aggregate amount of £5 pursuant to the share purchase approval granted by Rio Tinto plc shareholders at the 2008 Rio Tinto plc Annual General Meeting. The shares will be cancelled upon their repurchase by Rio Tinto plc.

It is immaterial to the shareholders of either Rio Tinto plc or Rio Tinto Limited if Rio Tinto Limited or any of its subsidiaries make a gain or a loss on such transactions as they have no effect on the Rio Tinto Group's overall resources. The underlying purpose of these proposed transactions is to facilitate the Rio Tinto Group's ongoing capital management programme and Rio Tinto considers that the transactions will not constrain its ability to maintain its progressive dividend policy and will not affect Rio Tinto Limited's capacity to fully frank its dividends. 

The number of Rio Tinto plc ordinary shares in issue for the purpose of Rule 2.10 and Rule 8 of the Takeover Code will increase temporarily each time shares are sold out of treasury to Rio Tinto Limited, but this increase will be reversed immediately when the relevant shares are repurchased and cancelled. 

The UK Takeover Panel has agreed that disclosures of dealings under Rule 8 of the Takeover Code should continue to be made on the basis of Rio Tinto plc's issued ordinary share capital of 998,066,058 shares (excluding shares held in treasury), disregarding the temporary effect of the transactions referred to above.

As an initial step in this programme, Rio Tinto plc will today sell 6,671,547 ordinary shares out of treasury to Rio Tinto Limited at a price of 5,108 pence per share, resulting in the number of Rio Tinto plc shares in issue (other than shares held in treasury) increasing from 998,066,058 to 1,004,737,605. Rio Tinto plc will immediately repurchase those shares from Rio Tinto Limited at an aggregate price of £5 and cancel them, whereupon the number of Rio Tinto plc shares in issue (other than shares held in treasury) will revert to 998,066,058. There will be no overall effect on the number of Rio Tinto plc shares in issue, other than a reduction in the number of ordinary shares held in treasury by Rio Tinto plc to 67,132,300.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa. For further information, please contact:

Media Relations, London Nick Cobban Office: [phone] Mobile: [phone]	Media Relations, Australia Ian Head Office: [phone] Mobile: [phone] Amanda Buckley Office: [phone] Mobile: [phone]
Investor Relations, London Nigel Jones Office: [phone] Mobile: [phone] David Ovington Office: [phone] Mobile: [phone]	Investor Relations, Australia Dave Skinner Office: [phone] Mobile: [phone] Investor Relations, North America Jason Combes Office: [phone] Mobile: [phone]
Email: [e-mail]
Website: www.riotinto.com High resolution photographs available at: www.newscast.co.uk

 

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