Rio launches $2.5bn share buy-back

Diversified major Rio Tinto will spend an additional $2.5-billion on its ongoing share buy-back programme, funded by the recent sale of its Coal & Allied subsidiary to ASX-listed Yancoal. The capital return programme will be executed through a combination of an off-market buy-back tender, targeting A$700-million of Rio’s shares, with the balance of around $1.9-billion of additional funds allocated to the company’s existing on-market purchase of Rio shares.