27 August 2008
Further to the announcement made by Rio Tinto on 23 July 2008 regarding a
series of transactions in Rio Tinto plc treasury shares as part of the Rio
Tinto Group''s internal capital management programme, Rio Tinto today intends
to undertake a further transaction in that series whereby shares currently
held by Rio Tinto plc in treasury will be sold to Rio Tinto Limited at market
value before being immediately repurchased by Rio Tinto plc for an aggregate
amount of ?5 pursuant to the share purchase approval granted by Rio Tinto plc
shareholders at the 2008 Rio Tinto plc Annual General Meeting. The shares
will be cancelled upon their repurchase by Rio Tinto plc.
It is immaterial to the shareholders of either Rio Tinto plc or Rio Tinto
Limited if Rio Tinto Limited or any of its subsidiaries make a gain or a loss
on such transactions as they have no effect on the Rio Tinto Group''s overall
resources. The underlying purpose of this series of transactions is to
facilitate the Rio Tinto Group''s ongoing capital management programme and Rio
Tinto considers that the transactions will not constrain its ability to
maintain its progressive dividend policy and will not affect Rio Tinto
Limited''s capacity to fully frank its dividends.
The number of Rio Tinto plc ordinary shares in issue for the purpose of Rule
2.10 and Rule 8 of the Takeover Code will increase temporarily each time
shares are sold out of treasury to Rio Tinto Limited, but this increase will
be reversed immediately when the relevant shares are repurchased and
cancelled.
The UK Takeover Panel has agreed that disclosures of dealings under Rule 8 of
the Takeover Code should continue to be made on the basis of Rio Tinto plc''s
issued ordinary share capital of 998,072,588 shares (excluding shares held in
treasury), disregarding the temporary effect of the transactions referred to
above.
Rio Tinto plc will today sell 2,828,387 ordinary shares out of treasury to
Rio Tinto Limited at a price of 5,127 pence per share, resulting in the
number of Rio Tinto plc shares in issue (other than shares held in treasury)
increasing from 998,078,235 to 1,000,906,622. Rio Tinto plc will immediately
repurchase those shares from Rio Tinto Limited at an aggregate price of ?5
and cancel them, whereupon the number of Rio Tinto plc shares in issue (other
than shares held in treasury) will revert to 998,078,235. There will be no
overall effect on the number of Rio Tinto plc shares in issue, other than a
reduction in the number of ordinary shares held in treasury by Rio Tinto plc
to 47,460,953.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the UK,
combining Rio Tinto plc, a London listed company, and Rio Tinto Limited,
which is listed on the Australian Securities Exchange.
Rio Tinto''s business is finding, mining, and processing mineral resources.
Major products are aluminium, copper, diamonds, energy (coal and uranium),
gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore.
Activities span the world but are strongly represented in Australia and North
America with significant businesses in South America, Asia, Europe and
southern Africa.
End CA:00169302 For:RIO Type:GENERAL Time:2008-08-28:11:37:36