SailingStone Intends to Vote AGAINST the Plan of Arrangement Between Turquoise Hill and Rio Tinto

Rhea-AI Summary

SailingStone Capital Partners, a significant stakeholder in Turquoise Hill Resources Ltd. (TSX:TRQ), opposes Rio Tinto's offer to acquire minority stakes at C$43/share, deeming it undervalued. The Special Committee of independent directors at Turquoise Hill has recommended acceptance of the offer, which is scheduled for a vote on November 1, 2022. SailingStone claims the deal leverages past governance failures and an arbitrary valuation, arguing it does not reflect the true worth of Turquoise Hill's premier asset, Oyu Tolgoi.

Positive

• None.

Negative

• Proposed all-cash acquisition of TRQ at C$43/share undervalues the company.
• SailingStone intends to vote against the acquisition, citing governance failures at Turquoise Hill and Rio Tinto.
• The bid is criticized for not representing the intrinsic value of Oyu Tolgoi.

HOUSTON--(BUSINESS WIRE)-- SailingStone Capital Partners, a long-time owner of Turquoise Hill Resources Ltd. (TSX:TRQ) (NYSE:TRQ), has issued the following statement:

Recently, the Special Committee of independent directors at Turquoise Hill Resources has recommended that minority shareholders accept an offer from Rio Tinto to acquire the minority’s stake via an all-cash plan of arrangement which values TRQ at C$43/share.

SailingStone Capital Partners intends to vote AGAINST the proposed transaction during the special meeting of shareholders currently scheduled for November 1, 2022. SailingStone believes that the bid significantly undervalues Turquoise Hill Resources and attempts to take advantage of the material governance failures created by Rio Tinto and the Turquoise Hill independent directors over the last decade.

SailingStone has published a slide deck detailing its rationale for opposing the deal, including its history of engagement with the TRQ independent directors, the litany of corporate governance failures at Turquoise Hill and Rio Tinto, and the arbitrary valuation process which has resulted in an all-cash bid that in no way represents the intrinsic value of a Tier I asset such as Oyu Tolgoi.

Click here to view a copy of the presentation.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221013006104/en/

For investor inquiries:

ir@sailingstonecapital.com

For media inquiries:

Jennifer Petree / Tina Tallant

pr@petreepartners.com

+1.713.269.3776

Source: Pickering Energy Partners

FAQ

What is SailingStone Capital Partners' position on Rio Tinto's offer for Turquoise Hill Resources (TRQ)?

SailingStone Capital Partners opposes Rio Tinto's offer, stating it undervalues Turquoise Hill Resources.

When is the shareholder vote regarding the acquisition of TRQ by Rio Tinto?

The shareholder vote is scheduled for November 1, 2022.

How much is Rio Tinto offering for Turquoise Hill Resources (TRQ)?

Rio Tinto is offering C$43 per share for the minority stake in Turquoise Hill Resources.

What are the concerns raised by SailingStone Capital Partners regarding the acquisition of TRQ?

SailingStone cites governance failures and an arbitrary valuation process as concerns regarding the acquisition offer.

What does SailingStone Capital Partners believe about the valuation of Turquoise Hill's assets?

SailingStone believes the valuation does not reflect the intrinsic value of Oyu Tolgoi, a Tier I asset.