Rio Tinto weighs new offer for Coal & Allied Industries from Glencore
Rio Tinto [ASX:RIO, LON:RIO] acknowledges that on 23 June it received a revised proposal from Glencore [LON:GLEN] to acquire Rio Tinto's wholly-owned Australian subsidiary, Coal & Allied Industries Limited.
The Rio Tinto board will give the new proposal appropriate consideration and will provide a further update in advance of the general meeting of Rio Tinto plc to be held in London at 11am on Tuesday 27 June 2017.
If Glencore's revised proposal is deemed to be a superior proposal under the terms of the sale and purchase agreement with Yancoal and the Rio Tinto board decides the revised proposal is in the best interests of shareholders, then the Rio Tinto board intends to adjourn the general meeting of Rio Tinto plc. The matching rights process, pursuant to which Yancoal will have two business days to present a counter offer, would then be implemented.
If the Rio Tinto board decides to reject Glencore's revised proposal, then the general meeting of Rio Tinto plc is expected to proceed as currently scheduled. In the event that the Rio Tinto board requires additional time to give the Glencore proposal appropriate consideration then the Rio Tinto board may adjourn the general meetings of Rio Tinto plc and Rio Tinto Limited.