Rio Tinto: Announces US$19.5 Billion Partnership With Chinalco
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SYDNEY -(Dow Jones)- Anglo-Australian miner Rio Tinto Plc (RTP) Thursday said
it would form a US$19.5 billion strategic partnership with Aluminum Corp. of
China, or Chinalco.
The deal, details of which were widely leaked to the press, includes a US$7.2
billion convertible bond issue and US$12.3 billion in asset sales across Rio's
aluminum, copper and iron ore business.
The convertible bond has two tranches with conversion prices of US$45 and US$
60. If converted the bonds will increase Chinalco's current shareholding in the
Rio Tinto Group to 18%.
"Chinalco's cash investment of US$19.5 billion will strengthen Rio Tinto's
balance sheet, increase our flexibility to deliver growth as markets recover and
position Rio Tinto for the next decade and beyond," said Rio Tinto Chairman Paul
Skinner.
The proposed deal will require approval by the Australian government,
shareholders and regulators
