Rio Tinto submits improved full and fair proposal for Turquoise Hill

Photo: Rio Tinto

Rio Tinto has submitted an improved non-binding proposal to the Turquoise Hill Board to acquire the approximately 49% of the issued and outstanding shares of Turquoise Hill that Rio Tinto does not currently own.

Under the terms of the Improved Proposal, Turquoise Hill minority shareholders would receive C$40 in cash per Turquoise Hill share.

This proposal values the Turquoise Hill minority share capital at approximately US$3.1 billion.

Rio Tinto Chief Executive Jakob Stausholm said: “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. 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 favour of Rio Tinto’s Improved Proposal.”

Last week, the Canadian firm turned down Rio Tinto’s previous offer of C$34 ($26.66) a share, proposed in March 2022, citing it did not ‘reflect full and fair value’.

Turquoise Hill owns a 66% stake in the Oyu Tolgoi project, which is one of the world’s largest known copper and gold deposits located south of Mongolia’s Ulaanbaatar.