TRQ - Why Turquoise Hill Stock Surged Today
Shares of Turquoise Hill Resources (NYSE: TRQ) jumped on Thursday after the Canadian mineral exploration and development company struck a deal to be acquired by mining giant Rio Tinto (NYSE: RIO) . As of 3:15 p.m. ET, Turquoise Hill's stock price was up more than 13%.
Under the terms of the agreement, Rio Tinto will buy the roughly 49% of Turquoise Hill's stock it doesn't already own for 43 Canadian dollars ($32.68) per share. The all-cash deal values Turquoise Hill at approximately CA$8.7 billion.
Turquoise Hill rejected Rio Tinto's original offer of CA$25.68 per share back in March. It also declined Rio Tinto's revised offer of CA$40 per share in August. The two companies then formed a special committee of independent directors to determine a fair price for shareholders. The new offer of CA$43 per share reflects the committee's deliberations.
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Why Turquoise Hill Stock Surged Today