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Ivanhoe Mines Completes $1.8 Billion Rights Offering
- Client News
- July 31, 2012
Practices
Paul, Weiss advised Ivanhoe Mines, a Canadian mining company with operations focused in the Asia Pacific region and majority-owned by Rio Tinto, on a $1.8 billion rights offering, which closed on July 27, 2012, as part of a comprehensive financing plan for continuing development of its Oyu Tolgoi copper mine in Mongolia. Rio Tinto committed to support the rights offering by exercising its full basic subscription privilege with respect to its 50.9% shareholding in Ivanhoe Mines, as well as by providing a standby commitment for the full amount of the rights offering, subject to certain conditions.
The trading of rights on the NYSE, NASDAQ and TSX (IVN) began on June 14, 2012 and the offering expired on July 19, 2012. Approximately 99.2% of the shares were taken up in the initial subscription of the rights offering with the balance taken up in the secondary subscription. Rio Tinto exercised all of its respective rights and participated in the secondary subscription provision available to all shareholders. Because the offering was over-subscribed, Rio Tinto did not purchase any shares under its standby commitment. As a result of the rights offering, Rio Tinto's stake in Ivanhoe Mines increased from 50.9% to 51.0%.
The Paul, Weiss team included corporate partners Andrew J. Foley and Edwin S. Maynard, corporate counsel Scott Fisher and Philip A. Heimowitz; tax partner David W. Mayo; and environmental counsel William J. O'Brien.