TRQ - Turquoise Hill soars after receiving Rio Tinto's takeover proposal
Turquoise Hill Resources (NYSE:TRQ) +30.6% pre-market after confirming Rio Tinto's (NYSE:RIO) proposal to acquire the ~49% of the company it does not already own for C$34/share (US$26.60) in cash; Rio -2.6% pre-market. The deal price represents a 32% premium to the latest closing price and valuing the Turquoise Hill minority share capital at ~$2.7B. Rio owns 51% of Turquoise Hill, which in turn owns 66% of the huge Oyu Tolgoi copper and gold project in Mongolia, with the remaining 34% held by a state-owned entity. Rio Tinto CEO Jakob Stausholm said the deal would enable the company "to work directly with the government of Mongolia to move the Oyu Tolgoi project forward with a simpler and more efficient ownership and governance structure." The deal will need support from a majority of Turquoise Hill's minority shareholders. The bid is "well-timed for all stakeholders, improving the likelihood of success," Bloomberg's Grant Sporrre writes.
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Turquoise Hill soars after receiving Rio Tinto's takeover proposal