By Senad Karaahmetovic
Rio Tinto (ASX:RIO) has said today it submitted an improved bid to acquire the remaining 49% of Turquoise Hill Resources (TSX:TRQ) shares it doesn’t currently own.
Shares of the Canadian mineral exploration and development company soared over 20% on the news. Rio’s new offer is C$40/share in cash, an 18% premium to the company’s previous proposal of C$34 per share.
The new offer also implies a 56% premium to Turquoise Hill's closing price on the TSE on 11 March 2022, the day prior to Rio’s first offer.
Rio Tinto Chief Executive Jakob Stausholm said: "Rio Tinto believes this offer not only provides full and fair value for Turquoise Hill shareholders, but is in the best interests of all stakeholders as we work to move the Oyu Tolgoi project forward.”
Last week, the Canadian company said it rejected Rio’s $2.7 billion offer.
"Engagement between the parties has not resulted in a consensus on value and price or in any improved proposal from Rio Tinto," Turquoise Hill said in a statement on August 15.
Shares of Turquoise Hill fell about 35% since March this year. The new offer comes after the company said recently that it is looking to raise new capital.