Palliser, which holds around $250 million of both Rio Tinto’s London and ASX-listed shares, has been campaigning for the miner to consolidate its primary listing in Australia since May. It claims the current dual-listed structure has deprived investors of $50 billion in value.
In early December, Palliser issued a letter challenging the justification for preserving the structural hierarchy of Rio Tinto Plc, the UK-listed entity.
The document raised several issues, including its inability to sustain dividends on its own, the small number of UK-based employees, its marginal contribution to the group’s EBITDA (earnings before interest, taxes, depreciation, and amortization), and the substantial trading discount relative to the Australian-listed counterpart, Rio Tinto Ltd.
Under the current dual structure, 77% of Rio Tinto’s shares are traded on the London Stock Exchange (LSE), with only 23% on the Australian…
