Sirius Minerals share price: Anglo American takeover timeline
The struggling fertiliser development company is just weeks away from collapsing if shareholders reject Anglo American's rescue deal, according Sirius Minerals chairman.
Anglo American confirmed its formal 5.5p takeover offer for the struggling fertiliser development company on Monday, with the deal valuing the business at £404.9 million.
Sirius Minerals closed at 5.5p a share on Monday.
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Sirius Minerals shareholders to vote on Anglo American deal
Sirius Minerals management, which is being advised by JP Morgan, said that the deal on the table is ‘fair and reasonable’ and the terms of the offer are ‘in the best interests of Sirius shareholders as a whole’.
The company’s shareholders will vote on whether to accept or reject the deal from Anglo American in a general meeting.
‘Anglo American's recommended offer provides greater certainty for Sirius' Shareholders, employees and wider stakeholders, while bringing the prospects for the development of this potential Tier 1 Project closer to reality,’ Anglo American CEO Mark Cutifani said in a statement.
‘We intend to bring Anglo American's financial, technical and product marketing resources and capabilities to the development of the project, which of course would be expected to unlock a significant and sustained associated employment and economic stimulus for the local area,’ he added.
Anglo American deal ‘only feasible option’
Sirius Minerals shareholders are expected to accept the deal from Anglo American, with the company’s chairman regrettably admitting on Monday that it represents the ‘only feasible option’.
‘Given the current cash constraints of Sirius, and lack of realistic and deliverable alternative financing and development options, we believe this to be a fair approach from Anglo American, a company committed to approaching the project in the right way, and with the resources to complete the job,’ Scrimshaw said.
‘We now face a stark choice. If the acquisition is not approved by shareholders and does not complete there is a high probability that the business could be placed into administration or liquidation within weeks thereafter.’
‘This outcome would most likely result in shareholders losing all of their investment, as well as put the future of the entire project, and its associated benefits for the local area and the UK, at risk,’ he added.
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