Rio Tinto (RIO) completed an off-market share buy-back of approximately A$2,871 million of capital from shareholders or 41,198,134 shares, representing 9.99% of the Rio Tinto Limited's issued ordinary shares. The buy-back price was $69.69 per share which represented a discount of 14% to the market price.
The ex-entitlement date was 25 September 2018 and the shares were taken to have been disposed of for CGT purposes on 12 November 2018, the buy-back completion date. The payment date was 19 November 2018.
The buy-back price received by participating shareholders comprised of two components:
- a dividend component, and
- a capital component.
Participating shareholders were paid a fully franked dividend of $60.25 (dividend component) for each Rio share disposed of. The deemed capital proceeds were $17.55 per share, being $9.44 capital component plus $8.11 which is the amount by which the tax value for CGT purposes ($77.80) exceeds the buy-back price ($60.25).
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