Rio Tinto reaches agreement with two Turquoise Hill shareholders over $3.3bn bid

Rio Tinto (ASX:RIO) announced Wednesday it entered into agreements with certain funds and other entities related to Pentwater Capital Management LP and SailingStone Capital Partners LLC in relation to the special meeting of Turquoise Hill shareholders to vote on Rio Tinto’s acquisition of 49% of the issued and outstanding shares of Turquoise Hill that Rio Tinto does not own for C$43.00 per share in cash.

Rio has proposed a $3.3 billion deal for Turquoise Hill shares it does not already own, seeking a 66% stake in Oyu Tolgoi in Mongolia, the world’s largest known copper and gold deposits.

Originally set for November 1, the meeting has been postponed until November 8.

Under the agreements, the security holders have agreed to withhold their votes at the meeting and exercise their dissent rights in respect of the arrangement.

Rio has agreed to increase the dissent condition under the agreement from 12.5% to 17.5% of Turquoise Hill shares issued and outstanding.

The parties have also agreed that the dissent proceedings with the Securityholders and certain other claims shall be conducted by arbitration, and the Securityholders shall be paid C$34.40 of the consideration following the completion of the arrangement, with the remaining consideration payable following the final determination of the arbitration.

Rio Tinto reconfirmed that the proposal of C$43.00 per Turquoise Hill share is best and final.

from MINING.COM https://ift.tt/4M6xVe9