Turquoise Hill minority shareholder ‘not interested’ in Rio Tinto’s $3.3 bln offer

FILE PHOTO: The Rio Tinto emblem is displayed on a customer’s helmet at a borates mine in Boron, California, U.S., November 15, 2019. REUTERS/Patrick T. Fallon/

Sept 2 (Reuters) – A minority shareholder of Turquoise Hill Sources Ltd (TRQ.TO) mentioned on Friday it doesn’t assist Rio Tinto’s (RIO.L), (RIO.AX) newest sweetened provide to purchase the remainder of the Canadian miner for $3.3 billion.

Mining large Rio Tinto, which owns a majority stake in Turquoise Hill, on Thursday reached an in-principle settlement to purchase a 49% stake in Turquoise Hill for C$43 per share. learn extra

California-based SailingStone Capital Companions, which owns a 2.16% stake in Turquoise Hill, mentioned the money provide for the stake doesn’t “adequately compensate” minority shareholders for his or her financial curiosity in Oyu Tolgoi.

The Oyu Tolgoi undertaking, positioned south of Mongolia’s capital Ulaanbaatar, is the world’s largest identified copper and gold deposit.

The deal to purchase the remaining stake in Turquoise Hill would give Rio Tinto a 66% stake within the Oyu Tolgoi undertaking, with the remaining 34% owned by the Mongolian authorities.

“Rio Tinto holds its curiosity in Turquoise Hill on the Rio stability sheet at $41 per share, the equal of C$56 per share at present trade charges and a greater than 30% premium to the revised provide,” SailingStone mentioned. (https://prn.to/3wPZTNQ)

“As massive, long-term holders of Turquoise Hill, we aren’t excited by promoting our stake at an enormous low cost to intrinsic worth.”

Personal funding agency Pentwater Capital Administration, a Turquoise Hill shareholder with a ten% stake, didn’t instantly reply to a Reuters request for touch upon the newest provide from Rio Tinto.

Pentwater had beforehand rejected Rio’s preliminary provide of C$34 per share made in mid-March. (https://reut.rs/3wPdN2A)

Reporting by Sameer Manekar in Bengaluru; Enhancing by Shounak Dasgupta

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