Rio Tinto and Turquoise Hill: Enter into definitive acquisition Agreement

Rio Tinto and Turquoise Hill Resources have signed a definitive agreement to acquire the remaining shares of Turquoise Hill for $3.3 billion.

Turquoise Hill's independent directors unanimously recommended that the company's minority shareholders approve the deal.

"After extensive negotiations, the terms of the transaction are final and there will be no further price increases," Rio Chief Executive Jakob Stausholm said in a statement.

The final offer represents a 67 per cent premium to Turquoise Hill's closing price of C $25.68 a share on March 11, the trading day before Rio Tinto's initial offer.

The companies also agreed to modify the financing arrangement to help Turquoise Hill address near-term funding liquidity issues, including increasing the May advance payment from $400 million to $650 million and extending the deadline for the $650 million equity financing and debt repayment until at least March 2023.

The deal requires two-thirds of shareholders, including those of Rio Tinto, to vote in favour. It must be approved by more than 50% of minority shareholders.