(MENAFN- Baystreet.ca)
Turquoise Hill Rejects Rio Tinto's $2.7 Billion Takeover Bid
Turquoise Hill Resources (TRQ) has rejected a $2.7 billion U.S. takeover bid from Rio Tinto
Group (RIO).
Rio Tinto had been interested in Montreal-based Turquoise Hill because it wants to gain control
of a giant copper mine that Turquoise Hill is developing in Mongolia.
However, in a news release, Turquoise Hill said that Rio Tinto's offer doesn't“fairly reflect the
fundamental and long-term strategic value of the company's majority ownership of the Oyu
Tolgoi project (in Mongolia).”
Rio Tinto already owns 51% of Turquoise Hill, which in turn holds a two-thirds share in Oyu
Tolgoi mine site, which is expected to produce copper and nickel.
Rio Tinto said in a written statement that it was disappointed by the decision and reiterated its
proposal to buy Turquoise Hill.
In March of this year, Rio Tinto offered $34 a share to Turquoise Hill's minority shareholders, a
then 32% premium to the mining company's share price.
Turquoise Hill's stock is up 63% this year and trading at $33.54 per share amid a boom in
commodity prices.
MENAFN15082022000212011056ID1104699090
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.