SailingStone Statement on Turquoise Hill Special Committee Approval of Rio Tinto Offer
HOUSTON — (PR Newswire) — 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.
ABOUT SAILINGSTONE CAPITAL PARTNERS LLC
SailingStone Capital Partners, a division of Pickering Energy Partners, provides investment solutions in the global natural resource space with a specific focus on the industrial businesses, commodities and infrastructure assets which will enable the energy transition. SailingStone manages concentrated, public and private equity strategies for institutional investors.
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