Rio Tinto completes off-market share buy-back tender

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Argyle3 rdax
Argyle3 rdax

Rio Tinto announced the completion of its off-market share buy-back plan which was announced on 12 February 2015 as part of the Group’s proposed US$2 billion capital return programme.

Image credit: www.riotinto.com. Photographer: Christian Sprogoe PhotographyDate: 27 July 2009
Image credit: www.riotinto.com. Photographer: Christian Sprogoe PhotographyDate: 27 July 2009

The company bought back around 11.6 million shares – or 2.65% of its issued capital – at an aggregate cost of approximately A$560 million (US$425 million), which is significantly higher than the indicative A$500 million announced due to strong demand.

According to the company’s media release, the buy-back price was A$48.44 per share which represented a discount of 14% to the market price for Rio Tinto Limited shares.

“The on-market buy-back of Rio Tinto plc shares, which will continue until the end of the year, will now total approximately US$1,575 million. To date, approximately 4.2 million Rio Tinto plc shares have been repurchased at an average price of £29.99 per share for an aggregate consideration of approximately US$189 million,” reads the media release.

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