Rio Tinto (ASX: RIO), the world’s third largest mining company, sold nearly all (97 percent) of the London listed shares on offer in a $15.2 billion sale to reduce debt.
Rio rejected a $19.5 billion investment proposal from its biggest shareholder Chinalco of China last month and instead opted for the share sale and an iron ore joint venture with BHP Billiton Ltd. Chinalco, as the state-owned company is known, confirmed today that its took up its rights in the share sale.
Its major shareholder, China's state-owned Chinalco, later said it had taken up its full entitlement to the offer, which ranks as the fifth-biggest on record. It was a sign that Chinalco was far from severing ties with Rio Tinto.
Rio was trading at $52.28, up 1.32% on the ASX.London-based Rio offered existing shareholders the right to buy 21 new shares for every 40 they hold at 1,400 pence for its London shares and A$28.29 for its Sydney shares.