(CercleFinance.com) – Rio Tinto announces today that it has submitted a non-binding proposal to Turquoise Hill to acquire 49% of the outstanding shares of the Canadian company.
Under the terms of the agreement, the minority owners would be offered C$34 per share – a premium of 32% over the last closing price of Turquoise Hill stock in Toronto – representing a minority share capital valuation of US$2.7 billion.
This proposal comes after an agreement was reached between Rio Tinto, Turquoise Hill and the Government of Mongolia to advance the mining project in Oyu Tolgoi, Mongolia.
“It would simplify Oyu Tolgoi’s ownership structure, strengthen Rio Tinto’s copper portfolio and reinforce our long-term commitment to Mongolia,” the mining giant said.
At this time, however, no agreement has been concluded between Rio Tinto and Turquoise Hill, and there is no guarantee that a transaction will result from these discussions.
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