Rio Tinto scraps plans to raise up to $US5 billion in share sale

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Rio Tinto scraps plans to raise up to $US5 billion in share sale


Rio Tinto has scrapped plans to raise as much as $US5 billion ($7.9b) in a share sale following pushback from investors.

According to Bloomberg sources, executives at the mining giant had floated the possibility of an equity offering in recent investor meetings after announcing its results.

The fundraising could have been used to help pay for its $US6.7b ($10.6b) takeover of Arcadium Lithium as well as rebalance its shareholding between UK and Australian investors.

Chief executive officer Jakob Stausholm said last month that raising money to rebalance the company’s share register was a possibility, but that no decision had been made.

Rio decided to shelve the idea after getting significant pushback from investors in recent meetings, especially as the company didn’t think the offering was a financial necessity, sources told Bloomberg.

A representative for Rio declined to comment.

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