Zhito Finance learned that activist investor Palliser Capital and over 100 other Shareholders sought a resolution on Thursday to reevaluate Rio Tinto's (RIO.US) dual listing model, aiming to unify Rio Tinto's corporate structure. Earlier this month, the United Kingdom-based Palliser urged Rio Tinto to abandon its main listing location in London and unify its corporate structure in Australia. It stated that due to the current dual listing arrangement, Shareholder value has already lost about 50 billion dollars.

On Thursday, Palliser informed the Board of Directors of Rio Tinto that the draft resolution would be submitted at the next annual Shareholders' meeting on January 16, aiming to provide Shareholders with independent information and assess the current ownership structure. The hedge fund stated that the resolution aims to determine whether maintaining the current structure is more desirable than unifying the company.

The hedge fund indicated that Palliser's initial proposal to unify Rio Tinto's dual listing structure received broad support from stakeholders, Analysts, and investors in Australia and the United Kingdom. In early December last year, Palliser questioned the structural hierarchy of maintaining the UK listed entity of Rio Tinto in an open letter. The letter highlighted several issues, including the inability of the entity to independently support dividends, the minimal issue of UK employees, its limited contribution to the group's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), and the significant trading discount compared to the Australian listed entity of Rio Tinto.

Palliser Capital stated: 'We believe that management has a responsibility to explain to investors fully and transparently why Rio Tinto is not affected by the inefficiencies of globally recognized dual listed company structures.'