Multinational Rio Tinto has made a proposal to the Turquoise Hill Board to purchase the 49% of Turquoise Hill shares that Rio Tinto does not currently own. Under the offer, Turquoise Hill shareholders would receive C$34 in cash per share which represents a 32% premium over the last closing price of the shares on the Toronto Stock Exchange. This proposal would value the minority equity of Turquoise Hill at approximately US$2.7 billion.
This proposal follows the recent agreement reached between Rio Tinto, Turquoise Hill and the Government of Mongolia to advance the Oyu Tolgoil project which would simplify the ownership structure of Oyu Tolgoi, strengthen Rio Tinto’s copper portfolio and reinforce its long-term commitment to Mongolia.
Rio Tinto CEO Jakob Stausholm details that “Rio Tinto believes strongly in the long-term success of Oyu Tolgoi and Mongolia, and in long-term delivery for all stakeholders. That is why we want to increase our stake in Oyu Tolgoi, simplify the ownership structure and further strengthen Rio Tinto’s copper portfolio. We believe the terms of the proposal are compelling for Turquoise Hill shareholders.”
