Turquoise Hill Resources Ltd (NYSE:TRQ) Rights Issue


Dallas, Texas 02/24/2014 (FINANCIALSTRENDS) – Turquoise Hill Resources Ltd (NYSE:TRQ)is one of the major companies which have reported one of the largest gold and copper deposit holding companies in the world. Admittedly, this property off the Turquoise Hill, in Canada was part of the massive portfolio held by Turquoise Hill Resources Ltd(NYSE:TRQ) founder Robert Friedland.

Rights Issue

Turquoise Hill Resources Ltd(NYSE:TRQ) has since announced $2.4 billion rights issue, which Freidland has ensured he can participate in, by ensuring maximum compliance with regulations. This has also included downloading his stake in the company.

Friedlandadmitted that he has by way of exercising his options in Turquoise Hill Resources Ltd(NYSE:TRQ).  On an operational level, however, Turquoise is handled by Rio Tinto PLC. This company has been increasing the stake it holds in Turquoise Hill Resources Ltd(NYSE:TRQ) over time, even as Friedland has lowered his.

As of the SEC regulations of second week of February, his position in this mining and exploration firm has seen some changes. This suggests that he currently holds less than the 5%, which is currently at 3.6%. Incidentally, as of December, the stake held by Friedland in Turquoise Hill Resources Ltd(NYSE:TRQ) is 10% of the stock.

In the meanwhile, another investor Fidelity Investments is believed to have lowered his investment in the common shares which is held by Turouqise Hill falling well below 5%, which is the threshold for beneficial ownership. The fall is now at 2.47%. Another hedge fund Pnetwater Capital Management LP is believed to be holding 7.38% stake. Others such as RS investment hold 6.35%, after the rights issue.

Turquoise Hill Resources Ltd(NYSE:TRQ) has been Friedland restructures his holding in the company he has founded. With the rights issues, his exposure to TRQ is positioned higher due to the $2.4 billion rights issue, following his exercising of his options.

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