Rio Tinto has submitted an improved non-binding proposal to the Turquoise Hill Board to acquire the approximately 49% of the shares of Turquoise Hill that Rio Tinto does not currently own for C$40/share. This proposal values the Turquoise Hill minority share capital at approximately US$3.1 billion.

Previously, Rio Tinto offered C$34/share and it was rejected by the Turquoise Hill Board as undervaluing the company and its stake in the Oyu Tolgoi mine in Mongolia. “Rio Tinto believes this offer not only provides full and fair value for Turquoise Hill shareholders, but is in the best interests of all stakeholders as we work to move the Oyu Tolgoi project forward,” Rio Tinto CEO Jakob Stausholm said. “We will continue to take a disciplined approach to capital allocation and strongly encourage the Board of Turquoise Hill to engage constructively, and to support and recommend in favor of Rio Tinto’s improved proposal.”

The latest proposal has the same conditions as Rio Tinto’s initial proposal, including no equity capital to be issued by Turquoise Hill pending completion of the transaction.

If Turquoise Hill agrees with the terms of this proposal, Rio Tinto said it is prepared to discuss appropriate further amendments to the updated financing arrangements between Turquoise Hill and Rio Tinto from May 18, 2022, and provide Turquoise Hill with the necessary liquidity to operate through completion of the transaction.

Turquoise Hill acknowledge receipt and said it is evaluating the proposal. If the board accepts the offer, Rio Tinto would hold a 66% interest in the Oyu Tolgoi mine with the remaining 34% owned by the Government of Mongolia.