Rio Tinto chief executive Jakob Stausholm said the deal will simplify governance and create greater certainty of funding for future of the Oyu Tolgoi project,which it currently operates.
“Rio Tinto is committed to moving Oyu Tolgoi forward in direct partnership with the Government of Mongolia to realise its full potential for all stakeholders,” he said.
The purchase price of C$43 per share is 19 per cent higher than the Canadian miner’s share price at last close,and Rio Tinto said the price is the company’s “best and final offer” afterits previous offers to buy the company at C$34 per share were rejected.
The takeover has the unanimous approval of the Turquoise Hill board special committee but will need to be confirmed by a two-thirds majority of Turquoise Hill shareholders and a simple majority of votes cast by minority shareholders.
Shareholders are expected to meet to approve the takeover bid as early as the fourth quarter of 2022. If approved,Rio Tinto expects to finalise the takeover shortly thereafter.
Rio Tinto Copper chief executive Bold Baatar said the deal represented good value for those with minority shares in the Canadian company.