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Turquoise Hill Resources Ltd. T.TRQ

Turquoise Hill Resources Ltd is a global mining company that primarily mines copper, gold, and coal in the Asia-Pacific region. The company holds a 66% interest in Oyu Tolgoi, one of the world's largest copper-gold-silver mines, which ships concentrate to customers in China. Oyu Tolgoi is located in the South Gobi region of Mongolia, approximately 550 km south of the capital, Ulaanbaatar, and 80 km north of the Mongolia-China border. The company also holds interests in companies that mine...


TSX:TRQ - Post by User

Comment by Skip57on Oct 17, 2022 6:46pm
231 Views
Post# 35030255

RE:RE:RIO stock offer

RE:RE:RIO stock offerLet's assume a "NO" vote and the stock takes a 50% haircut (doubtful that big a drop).  Also assume a rights offering of 1 billion (also doubtful that much needed).  Therefore 50 million shares issued which represents a 25% dilution.  Remember that RIO has to participate fully or risk losing control.  The preceding is a worse case scenario.  A "NO" vote guarantees that once the massive free cash flow begins, the stock will move up accordingly and RIO will be forced to up the bid substantially.  Don't believe RIO's "not a cent more" bluster.  Recall that the independent valuation was $41 to $58.  RIO's $43 offer is a joke.
As long as 25% of the minority excluding Pentwater and Sailingstone vote "No", the simple majority hurdle will not be met and this bid (along with possible future bids) will fail.
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