RE: Full Q&A with CF.19 Feb 2020 08:46
Yorkshire Post Q&A with Chris Fraser
How do you respond to comments that you’ve been ‘hiding’?
I understand why people might say that because we’ve always tried to be as open and transparent as we can with what we’re doing. But in a situation like this it is totally normal and appropriate for the Chairman to lead the engagement with our shareholders, as he represents the whole Board, and for the Company to communicate with all shareholders through formal announcements.
What’s the current status with the proposed takeover?
The scheme document has recently been published and that sets out the details of the proposed acquisition by Anglo American and how shareholders can vote.
It is really very important that all shareholders fully understand all the facts and implications of voting for or against the acquisition. As part of this, as always, I urge shareholders to ensure they take proper financial advice before deciding what to do. The Board unanimously recommends shareholders vote in favour of the acquisition at the shareholder meetings on the 3rd of March.
What is the likelihood of a counter offer? Have you held talks with other mining firms?
I can’t speculate on that. We have a duty to act in the interests of the Company and would of course consider any proposal.
However, since we launched our strategic review in September last year we have undertaken an extensive global search for a partner to join Sirius in our world-class project. This included large mining and fertilizer companies and many other providers of capital.
The only committed firm proposal that has come from this process is the one received from Anglo American. Unfortunately, Anglo decided to proceed only on the basis of a full acquisition of Sirius and not to become a project partner with us. So as we stand today this is the only viable pathway forward for the Company.
One analyst said the 5.5p offer was "a steal" for AA. Should you have held out for a higher offer?
I think our Chairman has already summed it up well by acknowledging that the returns offered by the offer are not what either our shareholders or the Board had previously hoped for. I completely understand that shareholders will be disappointed – as a shareholder so am I.
But the Board has made its recommendation in favour of the bid based on all of the information in front of it at the time. The reality is there is now a stark choice because we haven’t been able to deliver the complete stage two financing. That means that if the takeover does not complete there is a high probability that Sirius will go into administration. In turn that is likely to mean shareholders would lose all of their investment.
I see some people saying they want to vote no to hold out for a better deal, but I would urge those people to read the Board’s
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recommendation carefully and to seek professional financial advice.
I also see people saying they want to vote against the acquisition to ‘punish’ m
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