Rio Tinto Raises Bid for Turquoise Hill by 18% to $3.1 Billion -- Update
24 August 2022 - 11:58PM
Dow Jones News
By Ian Walker
Rio Tinto PLC on Wednesday raised its takeover proposal for
Turquoise Hill Resources Ltd. by 18%, valuing the Canadian-listed
company at US$3.1 billion.
Under the latest proposal accepting Turquoise Hill Resources
shareholders will get 40 Canadian dollars (US$30.87) for each share
held, up from Rio's previous offer of C$34 a share, which was
rejected by the Canadian company.
Turquoise Hill, which is 51%-owned by Rio Tinto, has a 66%
interest in the Oyu Tolgoi copper-gold mine in Mongolia.
"Rio Tinto believes this offer not only provides full and fair
value for Turquoise Hill shareholders, but is in the best interests
of all stakeholders as we work to move the Oyu Tolgoi project
forward," Chief Executive Jakob Stausholm said.
"We will continue to take a disciplined approach to capital
allocation and strongly encourage the board of Turquoise Hill to
engage constructively, and to support and recommend in favor of Rio
Tinto's improved proposal," he said.
Turquoise Hill said on Aug. 15 that the previous proposal wasn't
in the best interest of the company or its minority shareholders.
It said at the time that the price "does not fully and fairly
reflect the fundamental and long-term strategic value of the
company's majority ownership of the Oyu Tolgoi project".
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
August 24, 2022 09:43 ET (13:43 GMT)
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