Rio Tinto has submitted a new and improved bid to acquire the approximately 49% of the issued and outstanding shares of Turquoise Hill.
Under the terms of the improved proposal, which values the Turquoise Hill minority share capital at approximately US$3.1 billion, minority shareholders will receive C$40 in cash per Turquoise Hill share.
The new proposal represents an 18% premium to Rio Tinto’s initial proposal of C$34 per share, which was made on 14 March.
Commenting on Rio’s new offer, Chief Executive Jakob Stausholm said: “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.
“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 favour of Rio Tinto’s Improved Proposal.”
