SailingStone Capital Supports Turquoise Hill Resources Minority Rights
May 26 2020 - 5:00PM
Business Wire
SAILINGSTONE CAPITAL PARTNERS (“SailingStone”) announces that it
has written an open letter to the shareholders of Turquoise Hill
Resources Ltd (TSX/NYSE: TRQ) (“Turquoise Hill”) informing them of
SailingStone’s voting intentions at the rescheduled Annual and
Special Meeting on July 24, 2020. A copy of the letter can be found
at https://sailingstonecapital.com/media.html
In 2019, Turquoise Hill incumbent independent directors received
WITHHOLD votes from more than 50% of the minority investors who
voted, despite the explicit support of ISS and Glass Lewis. Instead
of engaging in substantive discussions with their largest minority
owners to address legitimate corporate governance concerns, the
Board chose to hide behind its majority shareholder. The minority
owners deserve representation on the Board, and as a result
SailingStone is supportive of and will vote FOR the independent
director nominee Matthew Halbower as well as the proposal to allow
minorities to nominate and elect three of the seven directors.
Conversely, SailingStone will once again vote WITHHOLD for the
legacy independent directors given their lack of accountability to
and alignment with the minorities.
Separately, Managing Partner MacKenzie Davis commented, “We are
encouraged by the progress being made by CEO Ulf Quellmann to
expand the management team’s capabilities and to improve alignment
with all stakeholders. In addition, the executive compensation
framework continues to evolve towards a more shareholder friendly
plan.” SailingStone therefore will vote FOR Ulf Quellmann, newly
appointed director George R. Burns, and the advisory Say-on-Pay
proposal.
While the market rightly remains focused on the de-risked mine
plan and the implementation of interim and permanent financing
arrangements, now is not the time to ignore basic corporate
governance standards. Progress is being made, but there is much
more to be accomplished. Allowing Turquoise Hill minorities to
determine their own representation is only reasonable given the
track record and de minimis shareholdings of the incumbent
independent directors.
About SailingStone Capital Partners: SailingStone Capital
Partners is a dedicated global natural resource investment advisor
focused on providing institutional investors access to a broad
array of solutions across the upstream natural resource space.
SailingStone offers strategies which span evergreen public equity
funds, opportunistic return of capital strategies and unique access
to direct investments in private companies and non-operated
funds.
Our expertise is on the supply-side of the equation, as we have
spent more than 25 years studying the economics of upstream
commodities and investing in the companies that produce them. We
believe that this provides us with a unique perspective on how
different commodity complexes react to a prolonged period of low
commodity prices, and a point of view in terms of opportunities,
survivors and value traps which exist in both the public and
private markets.
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version on businesswire.com: https://www.businesswire.com/news/home/20200526005851/en/
SailingStone Kelly McKale, Head of Investor Relations (415)
429-5198 ir@sailingstonecapital.com
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