19th Feb 2020 13:34
(Alliance News) - Sirius Minerals PLC shareholder Odey Asset Management LLP on Wednesday said that the takeover offer from Anglo American PLC "does not represent fair value for shareholders in Sirius".
The London-based hedge fund, in an open letter to the management team of Sirius Minerals and Anglo American, said it will vote against any Anglo American offer that is not designated as "final" for the potash miner, but will vote in favour of any bid which is 7 pence per Sirius share, or above.
Anglo American is currently offering 5.50p per share for London-listed Sirius Minerals, worth GBP404.9 million in total.
"Odey believes Anglo American have chosen not to declare their offer as "final" because there is a risk of both the deal failing at its current level, and of an interloper at a later stage," said Henry Steel, a fund manager at Odey.
"The lack of "final" offer, in Odey's opinion, suggests that Anglo American would be willing to bid substantially more for Sirius, with the investment case remaining highly attractive for Anglo American, even at a materially higher bid level," Steel added.
Odey Asset Management currently owns a 1.3% stake in Sirius Minerals.
Earlier in February, Sirius Minerals recommended shareholders to approve Anglo American's takeover offer after an alternative financing proposal was deemed unviable.
Shares in Sirius Minerals were up 1.1% at 5.15p each on Wednesday in London. Anglo American's London shares were up 0.8% at 2,071.50p, while its Johannesburg shares were 0.5% lower at ZAR402.39.
By Tapan Panchal; [email protected]
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