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Sirius Minerals possible offer from Anglo American
Posted: January 8th, 2020, 11:02 am
by richfool
The board of Sirius Minerals has announced that it's in advanced discussions with Anglo American regarding a possible cash offer of 5.5p per share. The Sirius board indicated it expects to be able to recommend the offer, subject to the outcome of certain ongoing discussions.
The offer values Sirius Minerals at £386m, and represents a 34.1% premium to the closing price the day before the announcement.
The shares rose 34.2% in early trading to 5.5p.
https://www.hl.co.uk/shares/share-resea ... o-american
Re: Sirius Minerals possible offer from Anglo American
Posted: January 8th, 2020, 11:20 am
by richfool
And a bit more from the BBC News website for those interested:
Anglo American is in advanced talks to buy Sirius Minerals for 5.5p a share, valuing the business at £386m (see earlier post).
The offer is about 40% above Tuesday's close price.
Anglo's shares fell 2.25% on the news of the bid, while shares in Sirius jumped 35%.
Quote Message: As one of the largest miners in the world, it [Anglo American] has the financial clout and expertise to make this project happen. We also wonder whether the government may have offered certain assurances. The fact this offer is public could make raising cash for other sources very tricky now, if not impossible, forcing [Sirius Minerals] into something of a corner – even if the price is not the best they will have to accept it. The market knows they need cash asap but with this offer on the table, it’s now the only show in town – they have to recommend it or it’s curtains. Anglo is picking up a distressed asset on the cheap. from Neil Wilson Chief market analyst, Markets.com
As one of the largest miners in the world, it [Anglo American] has the financial clout and expertise to make this project happen. We also wonder whether the government may have offered certain assurances. The fact this offer is public could make raising cash for other sources very tricky now, if not impossible, forcing [Sirius Minerals] into something of a corner – even if the price is not the best they will have to accept it. The market knows they need cash asap but with this offer on the table, it’s now the only show in town – they have to recommend it or it’s curtains. Anglo is picking up a distressed asset on the cheap.
Neil WilsonChief market analyst, Markets.com
https://www.bbc.co.uk/news/live/business-50869126
Re: Sirius Minerals possible offer from Anglo American
Posted: January 8th, 2020, 6:07 pm
by PinkDalek
Yes, the relevant announcements this morning are here:
Statement re Possible Offer
Released 07:00 08-Jan-2020https://www.londonstockexchange.com/exc ... 75166.html Anglo American response re. Sirius Minerals Plc
Released 07:02 08-Jan-2020https://www.londonstockexchange.com/exc ... 75288.htmlMrContrarian said
Looked like a bust to me. in his early morning Smallcap Sweeps:
viewtopic.php?p=275894#p275894I don't hold but I know someone who wishes they'd got out at close on 45p. It was a fun ride. At least there's a chance it won't all go to waste and over 1,200 jobs may be saved. Bloomberg suggests great news for convertible bondholders.
Re: Sirius Minerals possible offer from Anglo American
Posted: January 9th, 2020, 2:34 pm
by Bouleversee
I feel sorry for the Sirius investors but at least they will get something and the project will be saved. Anglo are probably best placed to bring it to fruition; it always sounded an exciting idea which should pay off in the end. Added to which, I have a holding in Anglo which has so far done well for me and hopefully will continue to do so though things may flatline a bit in view of the heavy expenditure on Woodsmith before the profits start to roll in as a result of broader shoulders being able to bear the cost for longer. Hope it doesn't turn out like HS2.
Re: Sirius Minerals possible offer from Anglo American
Posted: January 10th, 2020, 7:26 pm
by Pipsmum
I do hope they can and will be a beacon of hope because of all the livelihoods at risk.
Re: Sirius Minerals possible offer from Anglo American
Posted: January 20th, 2020, 3:26 pm
by richfool
Pipsmum wrote:I do hope they can and will be a beacon of hope because of all the livelihoods at risk.
Confirmation of the formal offer today:
The Board of Sirius Minerals has received, and recommended, a firm offer from Anglo American for the entire business. Under the terms of the offer Sirius shareholders would receive 5.5p per share.
Alongside the announcement Sirius Chairman, Russell Scrimshaw, commented:
"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."
The shares rose 1.9% in early trading to 5.5p
https://www.hl.co.uk/shares/share-resea ... o-american
Re: Sirius Minerals possible offer from Anglo American
Posted: January 21st, 2020, 6:04 pm
by terminal7
I feel sorry for the Sirius investors
Never invest in (or keep) shares for sentimental reasons.
T7