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Shareholders Vote on Whitby Potash Takeover

Shareholders Vote on Whitby Potash Takeover

Published by Jon Burke at 6:31am 3rd March 2020.

Shareholders in the Whitby potash mine project get to vote on a proposed takeover today.

Anglo American has offered 5.5 pence per share for Sirius Minerals, which has failed to find financing to continue building its polyhalite mine.

Some have criticised the offer, saying thousands of private investors will lose much of their investment.

Investment firm Odey is against the deal, saying the company is worth more than the £405 million Angl American is offering.

If it's a 'yes' vote, that still has to be ratified by the High Court later this month, when it'll need to be satisfied that shareholders have been treated fairly.

Barrister and member of the Sirius Minerals Shareholders Action Group, Ian Martignetti, said:

"I think you've got two possibilities, which we can't really guess at. Either, Sirius goes back to all of the shareholders and says 'if you can raise the money, we'll give it a go', or the institutions bring about a situation whereby, as Odey says, Anglo American are prepared to pay much more than 5.5 pence."

Ian's been speaking to Yorkshire Coast Radio's Jon Burke..

 

A spokesperson for Sirius Minerals said:

"We recognise the returns that this offer would represent are not what either our shareholders or the Sirius Board had previously hoped for. We regret that we are not able to deliver on our long-term goal of Sirius being able to deliver the Project into production, although we assure all stakeholders that the team has worked tirelessly and diligently over the last nine years to try and achieve that. However, 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.

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."

 

 

Comments

There are 2 comments on this page.

zara, on 3rd March 2020 9:38am
translated as we on the board will be okay its just you idiots who trusted us that will not.
Fileyman, on 3rd March 2020 4:50pm
I would think those who invested had the common sense to take strong legal and financial advice before laying out thousands in a high risk investment.

We all know the risks of investing money in these schemes.
If they work then your investment may rise, but if they don't you cannot blame anybody else but yourself.

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