The troubled miner has been saved by Anglo American although many investors will lose money on the deal
Thursday 05 Mar 2020 Author: Yoosof Farah

Potash miner Sirius Minerals (SXX) will be taken over by Anglo American (AAL) after more than 80% of shareholders by value voted in favour of the deal.

Shareholders should receive 5.5p per share in cash by early April and Sirius will delist from the stock market.

The £405m takeover also required a majority from individual voting investors, and despite a fractious meeting in which the Anglo offer was called an ‘insult’ by one shareholder, the deal was approved by 62% of shareholders by number.

While many shareholders might have incurred big losses on their investments, given that the Sirius share price had gone as high as 45p at one point, the company’s board of directors insisted if the deal wasn’t accepted the company would’ve gone into administration with shareholders losing all of their investment.

Russell Scrimshaw, chairman of Sirius, says: ‘The positive outcome secures a return for shareholders, and provides greater certainty in terms of safeguarding the project, protecting the jobs of our employees, and allowing the community, region and the UK to continue to benefit from the project.’

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