Pro-active mention in week round up2 Mar 2020 07:15
Getting Sirius
While in the US, primary voters across several states will be choosing their preferred presidential candidates, London will be getting it's very own ‘Super Tuesday’ as Sirius Minerals PLC (LON:SXX) investors vote on whether to approve the controversial £405mln takeover bid for the potash miner from Anglo American plc (LON:AAL).
While the board has recommended investors approve it, half of Sirius shareholders are private investors who bought shares at a much higher price and claim the offer “significantly” undervalues the company.
The offer has also attracted criticism from one of Sirius’ largest shareholders, hedge fund Odey Asset Management, which last week said the bid “does not represent fair value for shareholders” and reckons Anglo “would be willing to bid substantially more”.
With Odey having increased its stake in Sirius to 1.51% and another band of private investors looking to raise £460mln in a bid to stop Anglo’s takeover, the outcome of the vote will likely rest in the hands of the company’s 85,000 retailer shareholders, many of whom live close to the project site in Yorkshire.