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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