Rio Tinto PLC
12 April 2000
Rio Tinto Limited offer for Comalco
Rio Tinto Limited has sent its Bidder's Statement to Comalco Limited today for
its offer to acquire all the shares in Comalco which it does not already own.
The offer includes a share alternative. The Statement has also been lodged
with the Australian Securities & Investments Commission and the Australian
Stock Exchange.
Rio Tinto announced its intention to make the offer on 24 February 2000. Rio
Tinto's shareholding in Comalco is 72.43%.
THE OFFER
Rio Tinto Limited is offering:
(a) A$9.50 in cash for each Comalco share held; or
(b) one Rio Tinto Limited share for every three Comalco shares held; or
(c) one Rio Tinto plc share for every three Comalco shares held; or
(d) any combination of the above.
CONDITIONS OF OFFER
The offer is subject to several conditions, in particular, Rio Tinto Limited
becoming entitled to acquire compulsorily all of the remaining Comalco shares
that it does not own. The Foreign Investment Review Board has approved the
acquisition of all Comalco shares by Rio Tinto Limited.
BENEFITS OF OFFER
The cash offer represents a substantial premium to the historical prices of
Comalco shares. The offer price of A$9.50 per share represents a 17.3% premium
to the closing price on 24 February 2000 when the offer was announced and a
21.7% premium to the average price over the preceding month.
The cash offer is the highest price ever offered or paid for Comalco shares
prior to the announcement, either by Rio Tinto or in general market trading.
The share alternative is being offered for Comalco shareholders who prefer
shares to cash. It may also be attractive to eligible shareholders who want
to take advantage of capital gains tax roll-over relief, by choosing to
receive Rio Tinto Limited shares.
RIO TINTO SHARE BUY-BACK
In order not to increase its total issued share capital, Rio Tinto intends to
buy back on-market an equivalent number of shares to those issued under the
offer, subject to market conditions. Additional buy-backs may take place at
any time within Corporations Law and shareholder approved limits, again
subject to market conditions.
TIMETABLE
The Bidder's Statement will be mailed to Comalco shareholders on 20 April
2000, when the offer will commence. The offer will remain open until 22 May
2000 unless extended. Based on a 22 May closure date and the offer becoming
unconditional, Comalco shareholders who accept the offer will receive their
cash and/or shares consideration around mid-June 2000.
The Bidder's Statement is available from Rio Tinto's website at:
www.riotinto.com/press_menu.htm
Rio Tinto has appointed J B Were & Son as its broker for the offer.
For further information, please contact:
Media Relations Investor Relations
John Hughes Peter Jarvis
+ 44 20 7753 2331 + 44 20 7753 2401
JB Were & Son
Paul Perry
+ 61 3 9679 1693
Website: www.riotinto.com
Note:
The market values of the share alternatives, based on the Rio Tinto Limited
last sale price of A$25.90 at 2:00pm (AET) today and the mid-point of the bid
and offer prices of Rio Tinto plc of £10.48 as at close of trading in London
on 11 April 2000 (converted to Australian dollars at today's 2:00pm (AET) rate
of 0.3758) were A$8.63 and A$9.30 respectively.
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