Canada-based Turquoise Hill Resources has formed a special committee of independent directors to consider the proposal made by the company’s majority shareholder Rio Tinto International Holdings to buy out the remainder of shares in the company.
Rio Tinto in March announced an unsolicited, nonbinding proposal to acquire, through a plan of arrangement, the 49% of outstanding Turquoise Hill shares held by minority shareholders for a consideration of C$34 apiece.
The special committee, with Maryse Saint-Laurent as chairperson, has appointed BMO Capital Markets as financial adviser and Blake, Cassels & Graydon as legal counsel.
Additionally, the committee has retained TD Securities as an independent valuator to prepare a formal valuation of the common shares of the company.
The committee will also consider Turquoise Hills’ liquidity needs and whether it should proceed with an equity offer to meet these liquidity requirements or consider other financing options.
Turquoise Hill operates and holds a 66% shareholding in the Oyu Tolgoi copper/gold mine in Mongolia.