Rio Tinto launches more buybacks, brought to you by the exit of coal
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Rio Tinto (RIO) $77.87 as at 20/09/2018Event
The wait is finally over for Rio shareholders as the company announced how they plan to return capital from the coal asset sales back to its investors. Rio had for a long time signalled that the proceeds would make it to the pockets of shareholders, and today launched a $US 3.2b ($AUS 4.4b) buy back, comprising of on and off market components. Up to $US 1.9b worth of the Australian listed shares will be bought back, which will largely be paid for through a fully franked dividend as the miner aims to reduce its franking balance. We always knew this announcement was coming – whether it was a buy-back or special dividend – however the market still liked the confirmation and the stock has rallied over 3% today outpacing most peers. Rio Tinto (RIO) Chart
