Reuters
A private Chinese coal company said it plans to launch a $160 million offer for Inova Resources Ltd, offering a 29 percent premium for the Australian copper and gold miner controlled by Rio Tinto’s Turquoise Hill Resources.
Shanxi Donghui Coal Coking & Chemicals Group said on Wednesday it had secured a 14.9 percent stake from Turquoise Hill, which has promised to sell all its shares once Shanxi’s offer is accepted by shareholders representing 51 percent of the company.
Turquoise Hill, majority-owned by Rio Tinto Ltd , owns 56.2 percent of Inova Resources and has been reviewing asset sales or a sale of its stake for more than a year.
The deal would shore up Turquoise Hill’s funding as it faces a Dec. 31 deadline to repay up to $2.4 billion in debt to Rio Tinto, which has been funding Turquoise Hill’s costs at its biggest asset, the Oyu Tolgoi copper and gold mine in Mongolia.