Rio Tinto increases support for Ivanhoe Mines
Rio Tinto and Ivanhoe Mines have amended some of the terms of their recently agreed memorandum regarding a funding packing for Ivanhoe.
Rio Tinto and Ivanhoe Mines have amended some of the terms of their recently agreed memorandum regarding a funding packing for Ivanhoe.
Rio has confirmed that it will take up its full basic subscription privilege under the $1.8bn rights offering relating to its 51% shareholding in Ivanhoe.
The miner will also eliminate the material adverse change condition for its standby commitment in relation to a decline in Ivanhoe's share price and the standby commitment fee will be paid in cash, with Rio waiving its previously announced entitlement to reinvest its standby commitment fee in Ivanhoe common shares.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In addition, Rio will continue to provide a standby commitment for the full $1.8bn rights offering, meaning it will acquire any shares not taken up in the rights offering. The previously announced $8.34 subscription price will also be removed.
Rio's share price fell 3.8% to 2,825p by 15:02.
NR
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
DCC: a top-notch company going cheap
DCC has a stellar long-term record and promising prospects. It has been unfairly marked down
By Jamie Ward Published
-
Inflation risk continues for bond yields
Bond yields are ticking up even as interest rates fall, but they still don’t offer much protection against inflation.
By Cris Sholto Heaton Published