Turquoise Hill Resources Ltd. T.TRQ

Thumbs Down by Sailingstone

[Countrygent]

Latest Rio Tinto Offer Remains Disappointing to Minority Shareholders

HOUSTON, Sept. 1, 2022 /PRNewswire/ -- SailingStone Capital Partners LLC does not support Rio Tinto's revised offer to acquire the minority stake in Turquoise Hill for C$43/share. The proposal does not adequately compensate minorities for their economic interest in Oyu Tolgoi and is consistent with Rio's opportunistic attempts to take advantage of a situation that is of its own creation. The facts are clear: Rio Tinto holds its interest in Turquoise Hill on the Rio balance sheet at US$41/share, the equivalent of C$56/share at current exchange rates and a more than 30% premium to the revised offer. This should be the bare minimum for any attempt at price discovery. Furthermore, the independent directors (effectively appointed by Rio Tinto) continue their pattern of acquiescing to Rio Tinto at the expense of minority shareholders, agreeing to support a proposal at the low end of a deeply flawed valuation range. As large, long-term holders of Turquoise Hill, we are not interested in selling our stake at a massive discount to intrinsic value as we sit on the precipice of a wall of free cash flow.

[UNKLAL]

I still think the number I believe Robert Friedland sold a large chuck to RIO was at $29.95 USD. So using a CDN exchange rate say 1.30 the shares sold for roughly $39.00 CDN way back when!!! N RIO has been driving the stock price down ever since!!!  I think Pentwater will throw alot of water on this recent stink bid. Nice to see you back posting Countrygent!!! UNKLAL

[Countrygent]

Hate to remind you of depressing facts Unkal but TRQ was consolidated 10 for 1.  Friedland sold a chunk at the equivalent of $280cdn per share I believe, in 2010 or 2011.  The stock ran from below $4 CDN in the panic of the post-Lehman mortgage collapse in late 2008, to over $20 by 2010.  I remember well because I plunged hard in December 2008, swapped out for a big chunk of ETG