Rio Tinto Agrees In-Principle Deal to Acquire Turquoise Hill
August 31 2022 - 11:41PM
Dow Jones News
By David Winning
SYDNEY--Rio Tinto PLC said it has agreed terms with Turquoise
Hill Resources Ltd. to acquire the remaining shares in the
Mongolia-focused copper miner that it doesn't already own.
Rio Tinto said it has agreed to pay 43 Canadian dollars (US$33)
in cash to acquire all of the outstanding shares of Turquoise Hill,
representing an improvement on its most recent offer of C$40 per
share.
Turquoise Hill, which is 51%-owned by Rio Tinto, has a 66%
interest in the Oyu Tolgoi copper-gold mine in Mongolia.
Rio Tinto said the C$43-a-share proposal represents its best and
final offer, and that it values the Turquoise Hill minority share
capital at around US$3.3 billion. It has also agreed to several new
measures aimed at boosting Turquoise Hill's liquidity in the near
term.
"This agreement represents another significant step following
the recent commencement of the underground operations, and will
simplify governance, improve efficiency and create greater
certainty of funding for the long-term success of the Oyu Tolgoi
project," said Jakob Stausholm, Rio Tinto's chief executive.
If the transaction is successful Rio Tinto will hold a 66%
interest in Oyu Tolgoi with the remaining 34% owned by Mongolia's
government.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
September 01, 2022 00:26 ET (04:26 GMT)
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