(Finance) – Palliser CapitalHedge Fund based in London, published the letter he sent to the president of Rio tintosharing the results of a report prepared by Grant Thornton Australia which evaluated the potential impact of theunification of the structure of the double -rate company (DLC) of the mining giant.
Palliser has in fact In charge of Grant Thornton Australia to prepare a relationship independent evaluation on the unification of the DLC structure of Rio Tinto in a single holding company based in Australia. Grant Thornton Australia concluded, on the basis of information available to the public, that the advantages of unification exceed the disadvantages for both PLC shareholders and for Ltd shareholders.
In particular, Grant Thornton Australia believes that market tests indicate that i Australian capital markets are able to absorb the incremental offer of shares Limited at the time of long -term unification, thus supporting Rio tinted as a unified company.
The evaluation report also highlights “the significant strategic flexibility that unification would lead to Rio Tinto, in particular in a period of growing capital intensity for the development of new mines and growing consolidation in the sector “.
Grant Thornton Australia also confirms that, according to the base scenario adopted by Palliser, the unification could involve Transactional costs one -off equal to approximately 450 million dollars and additional current tax costs of approximately $ 145 million per year.
In addition, Rio Tinto’s unification is expected Close the discount between the negotiation prices of PLC and LTDoffering a short -term value benefit for PLC shareholders. Once any potential short-term volatility in the LTD negotiation price has stabilized, it is expected that a rewind of the DLC structure will be widely neutral or increase in value for LTD shareholders in the medium-long term.