Rio Tinto Takeover Not in Best Interests of Minority Shareholders, Turquoise Hill Says -- Update
August 15 2022 - 6:01AM
Dow Jones News
By Rhiannon Hoyle and Ian Walker
Turquoise Hill Resources Ltd. Monday said a special committee of
independent directors found a takeover proposal from majority
shareholder Rio Tinto PLC isn't in the best interest of the company
or its minority shareholders.
Turquoise Hill, which is 51%-owned by Rio Tinto, has a 66%
interest in the Oyu Tolgoi copper-gold mine in Mongolia. In March,
Rio Tinto made an all-cash offer to buy the shares it doesn't hold
in Turquoise Hill for 34 Canadian dollars (US$26.57) each, a 32%
premium to the last closing price before the offer was
announced.
This proposal valued the Turquoise Hill minority share capital
at roughly US$2.7 billion.
On Monday, Turquoise Hill said its special committee was
terminating its review of Rio Tinto's proposal, which it said "does
not fully and fairly reflect the fundamental and long-term
strategic value of the company's majority ownership of the Oyu
Tolgoi project."
Preliminary indications of value conducted by TD Securities
found Rio Tinto's offer "was well below a range of values implied
by TD's preliminary analysis," Turquoise Hill said.
"Engagement between the parties has not resulted in a consensus
on value and price or in any improved proposal from Rio Tinto," it
said.
Responding Rio Tinto said that it was disappointed by the
decision but still believes the deal would deliver compelling value
for Turquoise Hill minority shareholders.
Rio Tinto added that it will remain financially disciplined as
it considers its options.
"Rio Tinto remains as committed as ever to the long-term success
of Oyu Tolgoi. While we are disappointed by this decision, we will
continue to work constructively with the Board of Turquoise Hill to
advance the Oyu Tolgoi project," Rio Tinto Chief Executive Copper
Bold Baatar said.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com and Ian Walker
at ian.walker@wsj.com
(END) Dow Jones Newswires
August 15, 2022 05:46 ET (09:46 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Turquoise Hill Resources (NYSE:TRQ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Turquoise Hill Resources (NYSE:TRQ)
Historical Stock Chart
From Apr 2023 to Apr 2024