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Rio Tinto looks to acquire Turquoise Hill copper project

Published by
Global Mining Review,


Rio Tinto has made a 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 proposed transaction, Turquoise Hill minority shareholders would receive CAN$34 in cash per Turquoise Hill share, representing a premium of 32% to Turquoise Hill’s last closing share price on the Toronto Stock Exchange. This proposal would value the Turquoise Hill minority share capital at approximately US$2.7 billion.

The proposed transaction follows the recent comprehensive agreement reached between Rio Tinto, Turquoise Hill and the Government of Mongolia to move the Oyu Tolgoi project forward, reset the relationship between the partners and approve commencement of underground operations. It would simplify the Oyu Tolgoi ownership structure, strengthen Rio Tinto’s copper portfolio, and reinforce its long-term commitment to Mongolia. In addition, the proposed transaction provides Turquoise Hill minority shareholders with the ability to realise compelling, immediate, and certain value for their shares at a time when uncertainties inherent in the development of the underground operations and funding of such development remain.

Jakob Stausholm, Rio Tinto Chief Executive, comments:

“Rio Tinto strongly believes in the long-term success of Oyu Tolgoi and Mongolia, and delivering for all stakeholders over the long-term. That is why we want to increase our interest in Oyu Tolgoi, simplify the ownership structure, and further strengthen Rio Tinto’s copper portfolio. We believe the terms of proposal are compelling for Turquoise Hill shareholders.

“The proposed transaction would enable Rio Tinto to work directly with the Government of Mongolia to move the Oyu Tolgoi project forward with a simpler and more efficient ownership and governance structure. With our relationship reset and the underground operations commenced, this transaction demonstrates our clear and unequivocal long-term commitment to Mongolia.”

Read the article online at: https://www.globalminingreview.com/mining/18032022/rio-tinto-looks-to-acquire-turquoise-hill-copper-project/

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Rio Tinto news Asian mining news Copper mining news