Rio to pursue Turquoise bid after ending talks with minority shareholders – by Melanie Burton (Reuters – November 18, 2022)

MELBOURNE, Nov 18 (Reuters) – Rio Tinto Ltd (RIO.AX) said on Friday it would plough ahead with a $3.3 billion bid to buy the 49% of Canada’s Turquoise Hill Resources (TRQ.TO) that it does not already own, after it ended separate talks with dissenting minority shareholders.

The Anglo-Australian miner is seeking to simplify its management of the giant Oyu Tolgoi copper mine in Mongolia that it operates, but shares ownership through Turquoise Hill and the Mongolian government.

Rio needs two-thirds of voting Turquoise Hill shareholders to back its bid, including its own 51% stake, and a simple majority of the rest of the voting shareholders.

It has raised its offer for Turquoise Hill twice to C$43, but that has failed to satisfy Pentwater Capital and SailingStone Capital, two of its biggest minority shareholders, which own stakes of 15.2% and 2.2%, respectively.

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