Odey added again3 Mar 2020 08:04
Sirius rescue deal with Anglo American wins over Jupiter Asset Management
Emily Gosden
Tuesday March 03 2020, 12.01am, The Times
Conservative Party
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Sirius has spent more than $1 billion developing a mine to tap polyhalite from a mile beneath the North York Moors National Park
Sirius has spent more than $1 billion developing a mine to tap polyhalite from a mile beneath the North York Moors National Park
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One of Sirius Minerals’ largest investors is reluctantly backing a takeover by Anglo American today as it attempts to prevent the fertiliser mine developer from plunging into administration.
Jupiter Asset Management, which controls about 8 per cent of Sirius shares, is expected to vote in favour of the 5.5p-a-share takeover at a meeting in London this morning, despite having previously urged the company to explore alternatives.
Sources close to the £405 million deal said it was too close to call as retail shareholders seeking to exact revenge on Sirius’s board or hoping for a better offer could scupper the takeover. It needs approval by 75 per cent of those voting by value but also a simple majority of shareholders voting by number. About 7,000 of the tens of thousands of retail investors have the right to vote individually, so could sway the deal.
Sirius’s shares were down more than 10 per cent to less than 4p at times yesterday, suggesting investors fear the deal will not go through, but recovered to close down 2.3 per cent at 4.34p.
Sirius has spent more than $1 billion developing the Woodsmith mine near Whitby. It wants to tap polyhalite from a mile beneath the North York Moors National Park and to transport it via a 23-mile tunnel to Teesside for export.
It recommended the takeover by Anglo, the FTSE 100 mining group, after being unable to raise the $3 billion it needed to complete the mine.
The news of Jupiter’s voting intention was first reported by Sky News.
Jupiter is chaired by Nichola Pease. The hedge fund managed by her husband, Crispin Odey, said last week it had voted its 1.4 per cent stake against the deal. However, Odey Asset Management yesterday bought more shares in Sirius, suggesting it believes the deal will pass.
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