Paula Bronstein/Getty Images News
Turquoise Hill Resources (NYSE:TRQ) +12.5% pre-market on Thursday after reaching terms for Rio Tinto (NYSE:RIO) to acquire the remaining shares in the miner that it does not already own; Rio -3.9% pre-market.
Rio’s (RIO) A$43/share (US$33) deal, which values the Turquoise Hill (TRQ) minority share capital at ~US$3.3B, comes two weeks after Turquoise Hill rebuffed a lower offer of C$40/share.
Rio (RIO) said the deal, which also agreed to several new measures aimed at improving Turquoise Hill’s (TRQ) near-term liquidity, represents its best and final offer.
Turquoise Hill (TRQ), which is 51%-owned by Rio (RIO), owns 66% of the Oyu Tolgoi copper-gold mine in Mongolia, while the rest is owned by Mongolian government.
With potential 40%-plus upside in price appreciation, an 11% dividend that is still sustainable, and industry-leading performance on all fronts, Rio Tinto (RIO) shares are “a good place to hide while waiting for a market bottom,” Brett Ashcroft Green writes in a bullish analysis posted recently on Seeking Alpha.
Image and article originally from seekingalpha.com. Read the original article here.