Turquoise Hill: Rio Tinto Takeover Not in Best Interests of Minority Shareholders
August 15 2022 - 1:24AM
Dow Jones News
By Rhiannon Hoyle
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.
Rio Tinto couldn't immediately be reached for comment.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
August 15, 2022 01:09 ET (05:09 GMT)
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