Turquoise Hill shareholders approve Rio Tinto's $3.3 billion buyout bid
Reuters
Published Dec 09, 2022 12:53
Updated Dec 09, 2022 13:16
(Reuters) -Shareholders of Canada's Turquoise Hill (TSX:TRQ) on Friday voted in favour of Rio Tinto (LON:RIO)'s $3.3 billion bid to take it private and gain direct control over a giant Mongolian copper mine.
Turquoise Hill said 86.6% voted to approve Rio Tinto acquiring 49% of shares that it does not already own, giving the Anglo-Australian miner a 66% stake in Oyu Tolgoi, the world's largest known copper and gold deposit.
The vote clears the way for Rio Tinto to gain more autonomy over Oyu Tolgoi, which is 66% owned by Turquoise Hill and 34% by the Mongolian government, and operated by Rio.
However, the take-private process has not been straightforward.
Friday's shareholder meeting was repeatedly delayed due to opposition of key minority shareholders of Turquoise Hill, including funds Pentwater Capital and SailingStone Capital.
Rio Tinto had agreed to let the two dissenting parties withhold their votes and make claims via an arbitration process, a deal that was subsequently scrapped as it raised regulatory concerns.
Rio Tinto and Mongolia also settled a long-running dispute in January over the mine's economic benefits, in an accord that waived $2.4 billion of debt owed by the country's government.
The mining giant still faces a U.S. investor lawsuit led by Pentwater accusing it of concealing that it was falling up to 2-1/2 years behind schedule for the Oyu Tolgoi mine and coming in as much as $1.9 billion over budget.
Turquoise Hill said on Friday it expects the deal to be completed by or shortly after Dec. 16.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.