Original article by Peter Ker
The Australian Financial Review – Page: 17 & 22 : 21-Sep-18
Rio Tinto will repurchase around $US3.2bn worth of its shares, including $US1.9bn ($2.6bn) of its Australian-listed stock. The off-market buyback will be financed via the proceeds from the sale of Rio Tinto’s coking coal assets in Queensland. Don Hamson of Plato Investment Management says an off-market buyback is preferable to a special dividend, given that Labor intends to abolish cash refunds for excess franking credits if it wins the next federal election. Rio Tinto had previously announced $US2.4bn worth of buybacks.
RIO TINTO LIMITED – ASX RIO, PLATO INVESTMENT MANAGEMENT LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE