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


(END) Dow Jones Newswires

August 15, 2022 01:09 ET (05:09 GMT)

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