Turquoise Hill minority shareholder ‘not interested’ in Rio Tinto’s $3.3 billion offer

(Reuters) – A minority shareholder of Turquoise Hill Assets Ltd stated on Friday it doesn’t assist Rio Tinto’s newest sweetened supply to purchase the remainder of the Canadian miner for $3.3 billion.

Mining big Rio Tinto, which owns a majority stake in Turquoise Hill, on Thursday reached an in-principle settlement to purchase a 49% stake in Turquoise Hill for C$43 per share.

California-based SailingStone Capital Companions, which owns a 2.16% stake in Turquoise Hill, stated the money supply for the stake doesn’t “adequately compensate” minority shareholders for his or her financial curiosity in Oyu Tolgoi.

The Oyu Tolgoi challenge, positioned south of Mongolia’s capital Ulaanbaatar, is the world’s largest recognized copper and gold deposit.

The deal to purchase the remaining stake in Turquoise Hill would give Rio Tinto a 66% stake within the Oyu Tolgoi challenge, with the remaining 34% owned by the Mongolian authorities.

“Rio Tinto holds its curiosity in Turquoise Hill on the Rio stability sheet at $41 per share, the equal of C$56 per share at present trade charges and a greater than 30% premium to the revised supply,” SailingStone stated. (https://prn.to/3wPZTNQ)

“As massive, long-term holders of Turquoise Hill, we’re not concerned about promoting our stake at a large low cost to intrinsic worth.”

Personal funding agency Pentwater Capital Administration, a Turquoise Hill shareholder with a ten% stake, didn’t instantly reply to a Reuters request for touch upon the most recent supply from Rio Tinto.

Pentwater had beforehand rejected Rio’s preliminary supply of C$34 per share made in mid-March. (https://reut.rs/3wPdN2A)

(Reporting by Sameer Manekar in Bengaluru; Modifying by Shounak Dasgupta)