© Stocksak. FILEPHOTO: A Rio Tinto logo appears on a helmet worn by a visitor to a Borates mine in Boron (California), U.S.A., November 15, 2019. REUTERS/Patrick T. Fallon
(Stocksak) – Rio Tinto, (NYSE:) reaffirmed its offer to buy Turquoise Hill Resources, a Canadian miner (NYSE:) Ltd, for $3.3billion. This came a day after Institutional Shareholder Services (ISS) voted in favor of the deal.
Rio Tinto wrote Turquoise Hill shareholders that ISS’s final conclusion was based on “flawed logic”.
Rio agreed to buy the 49% Turquoise Hill share it did not already own last month for a “best-and-final” offer of C$43 per shares. This was after Rio raised its offer twice as the mining giant sought a 66% interest in Oyu Tolgoi, Mongolia’s largest known and most valuable gold deposits.
ISS had on Monday recommended Turquoise Hill shareholders vote “against” the deal. Pentwater Capital Management is the second-largest shareholder of the Canadian miner. Pentwater Capital Management was the third largest shareholder. Pentwater Capital Management said “the offer doesn’t represent a suitable value to shareholders.”
Turquoise Hill’s shares declined 1.5% to C$37.59