Odey to Vote Against Anglo's Offer for Sirius Minerals; Says Price Is Not 'Fair Value'
February 19 2020 - 5:27AM
Dow Jones News
By Anthony O. Goriainoff
Odey Asset Management LLP said Wednesday that it will vote
against Anglo American PLC's offer for Sirius Minerals PLC as it
believes the current price doesn't represent fair value for the
London-listed polyhalite mining company.
Odey--which recently took a 1.29% shareholding in Sirius--said
it would vote for a price of 7 pence (9.10 cents) per Sirius share,
up from the current offer that was recommended by Sirius's board of
5.50 pence. It made the disclosure in a letter to Sirius's
management dated Feb. 18 and made public on Wednesday.
The asset manager said Anglo American's decision not to make its
current offer final indicates the company's willingness to increase
its price "substantially" in the event of a counter offer.
Odey said it 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."
It said the lack of a "final" offer by Anglo American indicates
that it 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."
Sirius said on Jan. 20 that it had agreed a GBP404.9 million
offer from Anglo American Projects UK Ltd., a unit of Anglo
American. The offer price was a 34% premium to Sirius' closing
price of 4.10 pence on Jan. 7, a day before the company said it was
in talks with Anglo American over a possible offer.
Voting on the deal in court and general meetings are due to be
held on March 3.
Sirius shares at 0955 GMT were up 0.05 pence, or 1%, at 5.15
pence.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
February 19, 2020 05:12 ET (10:12 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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