Turquoise Hill Special Committee Announced it Found Rio Tinto's Privatization Proposal Does Not Reflect Full & Fair Value of the Company

Author: Charles Gross | August 15, 2022 04:15am
The Special Committee of independent directors of Turquoise Hill Resources Ltd. (TSX:TRQ) (NYSE:TRQ) ("Turquoise Hill" or the "Company") reports that it has advised Rio Tinto International Holdings Limited ("Rio Tinto") that the Special Committee is terminating its review and consideration of Rio Tinto's proposal to acquire all of the outstanding common shares of the Company it does not own for cash consideration of C$34 per share (the "Rio Tinto Proposal"). The Special Committee concluded, in consultation with its financial advisor, BMO Capital Markets, that Rio Tinto's offer price of C$34 per share does not fully and fairly reflect the fundamental and long-term strategic value of the Company's majority ownership of the Oyu Tolgoi project. In addition, the Special Committee reported that: In reaching its conclusion, the Special Committee considered a preliminary indications of value analysis conducted by TD Securities ("TD"), the independent valuator retained by the Special Committee, and noted that Rio Tinto's offer price of C$34 per share was well below a range of values implied by TD's preliminary analysis. Engagement between the parties has not resulted in a consensus on value and price or in any improved proposal from Rio Tinto. In assessing the Rio Tinto Proposal, the Special Committee also considered the risks facing the Company's investment in the Oyu Tolgoi project, as well as the progress that the Company has achieved in recent months on the underground project, including the firing of the first three drawbells ahead of schedule and current expectations that sustainable production will be achieved earlier than previously forecast. In consideration of the foregoing, the Special Committee determined that it is not in the best interests of the Company or the Company's minority shareholders for the Special Committee to support the Rio Tinto Proposal.

Posted In: RIO TRQ TSX:TRQ