LARKSPUR, Calif .– (COMMERCIAL THREAD) –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 annual and special meeting rescheduled on the 24th July. , 2020. A copy of the letter is available at https://sailingstonecapital.com/media.html
In 2019, the titular independent directors of Turquoise Hill received ABSTAIN votes from over 50% of minority investors who voted, despite the explicit support of ISS and Glass Lewis. Instead of engaging in substantive discussions with their major minority shareholders to address legitimate corporate governance concerns, the Board has chosen to hide behind its majority shareholder. Minority owners deserve representation on the board and therefore SailingStone will support and vote FOR 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 again vote ABSTAIN for inherited independent directors due to their lack of accountability and alignment with minorities.
In addition, Managing Partner MacKenzie Davis said, “We are encouraged by the progress CEO Ulf Quellmann has made in expanding the capabilities of the leadership team and improving alignment with all stakeholders. In addition, the executive compensation framework continues to evolve towards a more shareholder-friendly plan. SailingStone will therefore vote FOR Ulf Quellmann, new director George R. Burns and the Say-on-Pay advisory proposal.
While the market rightly remains focused on risk-free mining and the implementation of interim and permanent funding arrangements, now is not the time to ignore basic standards of corporate governance. Progress is being made, but there is still a long way to go. Allowing Turquoise Hill minorities to determine their own representation is only reasonable given the track record and de minimis shareholding of the independent directors in place.
About SailingStone Capital Partners: SailingStone Capital Partners is a global investment advisor dedicated to natural resources dedicated to providing institutional investors with access to a wide range of solutions in the upstream natural resources space. SailingStone offers strategies that encompass permanent public equity funds, opportunistic return on capital strategies and unique access to direct investments in private companies and untapped funds.
Our expertise lies on the supply side, as we have spent more than 25 years studying the economics of upstream raw materials and investing in the companies that produce them. We believe this gives us a unique perspective on how different commodity complexes respond to an extended period of low commodity prices, and a perspective in terms of the opportunities, survivors, and value traps that exist. both in public and private markets.