Turquoise Hill sells its remaining stake in SouthGobi Resources
New York and Toronto Stock Exchange listed Turquoise Hill Resources has decided to sell its remaining stake in SouthGobi Resources (22 percent) to Novel Sunrise Investments (headquartered in China) for 17 million CAD (13.5 million USD).
Turquoise Hill sold 48.7 million shares for 0.35 CAD each. The price was 31 percent lower than last Monday’s price.
The negotiation will be finalized on March 31, and 8.5 million CAD will be transferred to Turquoise Hill, while the remaining balance will be paid by next year.
After releasing the statement, shares of Turquoise Hill increased by 1.1 percent, reaching 3.79 CAD, while shares of SouthGobi Resources went up by 9.8 percent (0.56 CAD).
Novel Sunrise Investments, operating in real estate, logistics, and supply, will invest 7.5 million USD in SouthGobi Resources.
CNN reported that SouthGobi Resources will release 21.7 million shares shortly.
In July 2014, Turquoise Hill Resources reported selling 56.1 million shares of SouthGobi Resources to the Hong Kong listed National United Resources Holdings.
By trading the shares, Turquoise Hill, with 66 percent ownership of the Oyu Tolgoi project, is selling its entire stake in SouthGobi Resources (47.9 percent).
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