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Turquoise Hill shareholders accept Rio offering

12th December 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The shareholders of takeover target Turquoise Hill have backed the $3.3-billion takeover offer from mining major Rio Tinto, which will now acquire 49% of Turquoise Hill’s issued and outstanding common shares for C$43 a share.

Turquoise Hill said that 86.6% of all votes cast were in favour of the Rio offering, with the valid dissent notices filed representing less than 17.5% of all outstanding shares.

Rio said on Monday that given the transaction is being conducted by way of a Canadian plan of arrangement, the transaction remains subject to the final approval of the Supreme Court of Yukon with a hearing scheduled for December 14.

Completion of the acquisition is expected in the days following court approval, after customary closing procedures.

“We welcome the support from minority shareholders, which is a key milestone in our acquisition of Turquoise Hill. This transaction will deliver significant benefits for all shareholders, and allow us to progress the Oyu Tolgoi project in partnership with the government of Mongolia with a simpler and more efficient governance and ownership structure,” Rio Tinto copper CEO Bold Baatar said.

Should court approval be obtained, the transaction will be completed on or shortly after December 16.

Rio previously said that the transaction would simplify governance, improve efficiency and create greater certainty of funding for the long-term success of the Oyu Tolgoi project, and would provide Turquoise Hill shareholders with certainty.

Turquoise Hill previously estimated that it requires $3.6-billion of additional funding in total to complete the project. It aims to address this through a funding plan including renegotiating debt repayment dates, which requires the unanimous consent of participating lenders. The success of this debt renegotiation and certain other funding plans is uncertain and, if unsuccessful, could require further equity contributions from shareholders.

Edited by Creamer Media Reporter

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