Activist investor Palliser Capital, along with over 100 shareholders, is pushing for a resolution to reassess Rio Tinto's (RIO, Financial) dual-listing structure. Earlier, Palliser urged Rio Tinto to abandon its primary listing in London and unify its corporate structure in Australia, citing a $50 billion loss in shareholder value due to the current dual-listing arrangement.
Palliser has informed Rio Tinto's board that this resolution will be presented at the next annual shareholder meeting in January. The aim is to provide shareholders with independent information to evaluate the existing ownership structure. The hedge fund argues that unifying the company could be more beneficial than maintaining the current setup.
Palliser's proposal has received widespread support from stakeholders, analysts, and investors in both Australia and the UK. The hedge fund has highlighted several issues with the current structure, including limited dividend support, minimal UK employee presence, and a significant trading discount compared to its Australian counterpart.
