ISS Joins Glass Lewis in Recommending Shareholders Vote FOR Palliser’s Proposal at Rio Tinto’s AGM

March 19, 2025 at 02:00 AM EDT

- Second leading independent proxy advisor supports Palliser’s proposal to conduct a proper examination into the unification of Rio Tinto’s DLC structure

- ISS finds Rio Tinto Board’s “arguments and assumptions lack detail and are difficult to reconcile with the BHP experience and public information…”

Palliser Capital (“Palliser”) today welcomed the endorsement of leading independent proxy advisory firm Institutional Shareholder Services (“ISS”) of its resolution at the Annual General Meeting (AGM) for Rio Tinto Plc (LSE:RIO) on April 3, 2025. This follows Glass Lewis’ endorsement on 14 March 2025.

ISS notes that the BHP transaction particularly sets “a precedent that is difficult to dismiss”, evidently unconvinced by Rio Tinto’s explanation in its recent letter to shareholders that “BHP’s facts and circumstances were materially different than Rio Tinto’s”. In support of Palliser’s position, ISS states that “unification appears to bring several benefits, like reduced complexity and lower chance of conflict of interest, strategic flexibility and, for Plc shareholders, a closing of the valuation discount of their shares.”

James Smith, founder and Chief Investment Officer of Palliser, said: “We are very pleased that the most trusted voices for voting guidance have both supported our resolution. This sends a very clear message to Rio Tinto – it must step up and deliver the fully independent and transparent review that shareholders deserve on a topic of such critical importance.”

All information relating to Palliser’s long-running engagement with Rio Tinto and its AGM proposal can be found at: UnifyRio.com.

About Palliser Capital

Palliser Capital is a global multi-strategy fund. Our value-oriented investment philosophy is applied to a broad range of opportunities throughout the capital structure with a focus on situations where positive change and value enhancement can be achieved through thoughtful, constructive and long-term engagement with companies and across a range of different stakeholder groups.