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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