TORONTO — Pentwater Capital Management LP says it has increased its stake in Turquoise Hill Resources Ltd. to 13.77 per cent.

The investment manager says it believes Rio Tinto's deal to take Turquoise Hill private undervalues the company and does not support the plan.

Turquoise Hill announced a deal earlier this month that would see Rio Tinto, which already owns a 51 per cent stake in the company, acquire the rest of the miner for $43 per share in cash.

The Turquoise Hill board has unanimously recommended that the company's minority shareholders vote in favour of the deal.

However, the agreement requires approval by a two-thirds majority vote by Turquoise Hill shareholders, including Rio Tinto, and the approval of a simple majority of the votes cast by the company's minority shareholders.

Turquoise Hill owns a 66 per cent stake in the Oyu Tolgoi copper and gold mine in Mongolia. Erdenes Oyu Tolgoi LLC, a Mongolian state-owned entity, holds the remaining 34 per cent interest.

This report by The Canadian Press was first published Sept. 16, 2022.

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