Anglo American’s rescue deal for Sirius Minerals approved by shareholders

Anglo American is set to complete the takeover of struggling UK potash miner Sirius Minerals after its £405 million rescue deal was approved by a majority of Sirius’ shareholders last night.

Following a lengthy shareholder meeting in London, Anglo’s bid was approved by 80.28% of the 1,300 investors involved in the crucial vote. The offer needed 75% approval to go ahead and will save Sirius from falling into administration, according to the company.

The approval also offers a lifeline to Sirius’ large-scale potash mine located in the Northeast of the UK, which was set to be shelved if no deal could be reached. The proposed project is believed to be the largest potash fertiliser deposit in the world.

Sirius chairman Russell Scrimshaw said: “The positive outcome from today’s meeting secures a return for shareholders, and provides greater certainty in terms of safeguarding the project, protecting the jobs of our employees, and allowing the community, region and the UK to continue to benefit from the project.”

However, tensions ran high between Sirius’ directors and shareholders at the meeting, after investors were asked to to vote in favour of Anglo’s 5.5p per share offer, despite some paying as much as 25p a share when the company was growing.

@RGNonline