Rio Tinto Shareholders Approve Increase In Share Capital
April 16 2009 - 1:24PM
Dow Jones News
U.K.-listed Rio Tinto PLC (RTP) said Thursday that shareholders
at its annual general meeting approved three resolutions, none of
which are related to its planned $19.5 billion alliance with
Aluminum Corp. of China Ltd. (ACH), or Chinalco.
The resolutions passed included one for an increase in
authorized share capital, one on the disapplication of pre-emption
rights and another on a notice period for general meetings other
than annual general meetings.
The resolutions are "standard" resolutions for shareholders,
said Robin Walker, a Rio Tinto spokesman.
"Seeking authority to allot a third of the total issued share
capital is specifically supported by the (Association of British
Insurers) and allows companies to have maximum flexibility to
respond quickly to business and economic developments," Walker
said.
The resolution on the disapplication of pre-emption rights gives
Rio's directors authority to issue up to 5% of the company's
combined issued share capital. This resolution only applies to
direct issues of equity and not convertible bonds that are proposed
to be used in the Chinalco deal.
Also, the Chinalco deal would require the issuance of shares
equivalent to 9% of Rio's combined equity capital.
"This is a standard resolution that we put before shareholders
each year," Walker said. "It is an approach that is very common
amongst listed U.K. companies and the boards would recommend the
adoption by shareholders of this resolution regardless of the
Chinalco transaction."
-By Matthew Walls, Dow Jones Newswires; +44 (0)20 7842 9412;
matthew.walls@dowjones.com