Turquoise Hill Shares Slide in Premarket Trading After Rio Tinto Buyout Proposal
August 15 2022 - 6:56AM
Dow Jones News
By Adriano Marchese
Shares in Turquoise Hill Resources Ltd. fell in premarket
trading Monday after the mining company said Rio Tinto PLC's
takeover offer isn't in its best interest.
Minority investor and partner Rio Tinto PLC made an all-cash
offer to buy the shares it doesn't hold in Turquoise Hill at a 32%
premium to the last closing price before the offer was
announced.
At 6:16 a.m ET, Turquoise Hill's New York-traded shares were
down 24% from its previous close of $26.25.
Turquoise Hill said a special committee it had established
determined that the offer "does not fully and fairly reflect the
fundamental and long-term strategic value of the company's majority
ownership of the Oyu Tolgoi project."
Rio Tinto offered 34 Canadian dollars (US$26.57) for each share
it doesn't already own, valuing Turquoise Hill's minority share
capital at roughly US$2.7 billion.
Turquoise Hill is already 51%-owned by the U.K. mining giant and
holds a 66% interest in the Oyu Tolgoi copper-gold mine in
Mongolia.
The company said discussions between the two parties hasn't led
to consensus on value and price nor a better offer from Rio
Tinto.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
August 15, 2022 06:41 ET (10:41 GMT)
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