TORONTO — Rio Tinto has raised its offer for the 49 per cent stake in Turquoise Hill Resources Ltd. that it does not already own.
Turquoise Hill holds a majority stake in the Oyu Tolgoi project in Mongolia.
Under the new proposal, Rio Tinto is offering $40 in cash per Turquoise Hill share. The bid is up from an earlier offer of $34 per share that Turquoise Hill rejected.
Turquoise Hill acknowledged the new offer and said the special committee of the company’s board was considering the proposal.
The company said shareholders do not need to take any action with respect to the proposal at this time.
Turquoise Hill shares were up $7.61 or about 25 per cent at $37.80 in trading Wednesday on the Toronto Stock Exchange.
Rio Tinto chief executive Jakob Stausholm says the offer provides full and fair value for Turquoise Hill shareholders.
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 Aug. 24, 2022.
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The Canadian Press