SailingStone’s Statement Regarding Turquoise Hill’s Special Committee Approval of Rio Tinto’s Offer

Rio Tinto’s latest offer remains disappointing for minority shareholders

HOUSTON, September 1, 2022 /PRNewswire/ — SailingStone Capital Partners LLC does not support Rio Tinto’s revised offer to acquire the minority stake in Turquoise Hill for $43 CAD/to 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 making. The facts are clear: Rio Tinto holds its stake in Turquoise Hill on Rio’s balance sheet at $41/share, the equivalent of $56 CAD/share at current exchange rates and a premium of more than 30% over the revised offer. This should be the bare minimum for any price discovery attempt. Moreover, independent directors (effectively appointed by Rio Tinto) continue their tendency to acquiesce to Rio Tinto at the expense of minority shareholders, agreeing to support a proposal at the bottom 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.


SailingStone Capital Partners, a division of Pickering Energy Partners, provides investment solutions in the global natural resources space with a particular focus on industrial companies, commodities and infrastructure assets that will enable the energy transition. SailingStone manages focused, public and private equity strategies for institutional investors.

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SOURCE SailingStone Capital Partners

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