Rio Tinto agrees to $19.5 bln Chinalco deal: source

HONG KONG - Rio Tinto Ltd/Plc RIO.AXRIO.L will sell $12.3 billion in assets to Chinalco and raise a further $7.2 billion by issuing China's top aluminium maker convertible bonds to cut debt, a source with direct knowledge of the deal said on Thursday.

By (Reuters)

Published: Thu 12 Feb 2009, 11:00 AM

Last updated: Thu 2 Apr 2015, 3:55 AM

The deal, which will require approval by Australian foreign investment regulators, will increase Chinalco's stake in Australia and London-listed Rio to 18 percent from 9 percent, the source said on Thursday. The source was not authorised to speak on the record about the deal.

Chinalco's convertible bonds in Rio comes with a 60-year financing term and a 7-year call option, the source said.

Chinalco's investment involve minority stakes in nine mines around the world: Boyne & GPS, Escondida, Grasberg, Hamersley Iron, La Granja, KUC, Weipa and Yarwun.

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