Rio Tinto Group (RIO) may spin off its Pacific Aluminium unit and use debt secured with the assets to pay shareholders a special dividend, the Independent on Sunday said, citing a person close to the company it didn’t identify.
The payment may be for as much as A$1 billion ($1.04 billion), with the creation of a separate aluminum company traded in Australia scheduled for the end of the third quarter, the newspaper reported.
A spokeswoman for Rio said it’s not in a hurry to divest the Pacific Aluminium assets and may wait until the economic climate improves, the Independent said.
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