Norges Bank, the world's largest sovereign wealth fund, has announced its intention to vote against the resolution calling for a review of Rio Tinto's dual-listed structure. The fund holds a 2.51% stake in London-listed Rio Tinto Plc, making it the seventh-biggest shareholder. This decision provides significant backing to Rio Tinto's board.
The resolution, brought by activist investor Palliser Capital and over 100 other shareholders, seeks an independent review of the company's dual-listed structure. Norges Bank's stance aligns with Rio Tinto's board, which has unanimously recommended shareholders vote against the proposal. This move reduces the pressure on management to alter its corporate structure.
The vote from such a prominent institutional investor is a material development in the ongoing debate over Rio Tinto's listing. It signals a lack of widespread support among major shareholders for Palliser's proposal. This outcome could strengthen the board's position in maintaining the current dual-listed company structure.
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