Activist investor Palliser Capital is pushing for a shareholder vote on whether Rio Tinto should review its dual listing structure and move its primary listing from London to the ASX. Palliser argues that the dual listing has hindered the company's growth and destroyed shareholder value.
Activist investor Palliser Capital today said it is to force a motion onto Rio Tinto 's next AGM that will allow shareholders to vote on whether the company should launch a review into moving its primary listing from the London exchange to the ASX .Palliser last raised this on December 4, when it urged Rio to unify the dual-listed company structure on the London Stock Exchange and Australian Stock Exchange into a single Australian-domiciled holding company.
Palliser, which claims it has the support of more than 100 shareholders, said that the dual listing 'remains a governance concern, strategic impediment and value roadblock', adding that it believes the dual listing has destroyed $50 billion of shareholder value since its inception.The UK-based hedge fund, which holds almost $200 million in Rio Tinto shares, explained in a letter to the Rio Tinto Board that the resolution has been put forward to 'provide all shareholders with access to independently sourced information and ensure a robust review' on whether Rio Tinto should keep its current ownership structure.Moving the dual listing structure and making the ASX the primary listing would unlock 'a path to $28 billion in near-term upside for PLC shareholders and setting the company on a trajectory for sustainable growth,' Palliser said.In May, Palliser already pushed for Rio to move its primary listing to Australia
Rio Tinto Palliser Capital Dual Listing ASX Shareholder Value
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