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Sirius Minerals chairman issues stark warning to shareholders
At least 75% of shareholders need to approve the offer for it to proceed. Sirius chairman Russell Scrimshaw says takeover failure could see the business go into administration or liquidation, adding that the Anglo offer ‘is the only feasible option’ for the potash mine development to proceed.
Documentation connected to the offer will be sent to Sirius shareholders within the next four weeks.
Should the takeover happen, any Sirius shareholders using the cash proceeds to reinvest into Anglo shares should appreciate that they would be getting exposure to many different commodities than just potash. Anglo American is the world’s largest producer of platinum and is also a major global producer of copper, nickel, diamonds and iron ore.
Sirius’ potash project would only make up a small amount of Anglo’s interests in the near-term. Anglo implies it will stick to Sirius’ current development schedule for the first two years of owning the company, thereby ensuring the project will benefit the local community in Yorkshire and the UK as previously guided.
Senior managers at Sirius including chief executive Chris Fraser will remain with the business under Anglo’s ownership for at least one year after a successful takeover. Sirius’ shares would delist from the stock market if the deal goes ahead.