The largest minority shareholder in Turquoise Hill Resources Ltd. says an offer by Rio Tinto International Holdings Ltd. to take the miner private is too low.
Rio Tinto, which already owns a 51 per cent stake in the company, has offered $34 per share for the roughly 99 million shares held by Turquoise Hill's minority shareholders.
However, in a letter to Turquoise Hill's independent directors, Pentwater Capital Management LP says Rio Tinto is trying to buy the take at a fraction of the value of what the shares are worth.
Pentwater, which holds a nearly 10 per cent stake in Turquoise Hill, says if Rio Tinto believes its bid is a compelling offer, it would be pleased to buy part of its stake in the company for that price.
The opposition to the deal follows a letter from fellow shareholder SailingStone Capital Partners, which was also critical of the Rio Tinto offer.
Turquoise Hill owns a 66 per cent stake in the Oyu Tolgoi copper and gold mine in Mongolia. Erdenes Oyu Tolgoi LLC, a Mongolian state-owned entity, holds the remaining 34 per cent interest.
This report by The Canadian Press was first published March 18, 2022.
Companies in this story: (TSX:TRQ)
The Canadian Press
