Allens has advised Rio Tinto on its disbursement of US$2.08 billion (AU$2.87 billion) of post-tax coal disposal proceeds to shareholders through a share buy-back program.
The firm advised on all corporate and tax aspects of the program, which combines an off-market buy-back tender targeting up to 41.2 million Rio Tinto Limited shares with further on-market purchases of Rio Tinto plc shares.
The off-market buy-back completed on 12 November 2018, with the remaining US$1.1 billion (AU$1.52 billion) of funds to be returned through an ongoing buy-back of Rio Tinto shares.
The $3.2 billion of net disposal proceeds is derived from the completed sales of the Hail Creek and Valeria, Winchester South and Kestrel mines, on which Allens also advised.
'We are pleased to have advised longstanding client Rio Tinto as it continues to provide market-leading returns for shareholders,' said Partner Richard Kriedemann, who led the corporate team on the matter.
'Off-market share buy-backs continue to have a valuable role to play in delivering efficient capital management for shareholders,' said Partner Martin Fry, who led the tax team.
The program is subject to market conditions and compliance with applicable laws and regulations.
Allens legal team
Corporate: Richard Kriedemann (lead Partner), Gadi Bloch (Special Counsel)
Tax: Martin Fry (lead Partner), Jay Prasad (Senior Associate)
Notes for editors.
Allens is a commercial law firm working throughout Australia and Asia. Through its integrated alliance with Linklaters it provides clients access to 40 offices in 28 countries around the world.