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Sirius Minerals win rescue deal

Sirius Minerals win rescue deal

Yorkshire-based, Sirius Minerals has secured a rescue deal.

The deal is set to create more than 1,000 jobs and provide future benefit for the local community and wider region. The £4bn fertiliser mine the company are building under the North York Moors will be the UK’s first major deep mine in 40 years.

Shareholders backed a £405m bid from Anglo America, in efforts to prevent the cash-strapped company falling into administration.

But…

Those who attended the meeting at the Honourable Artillery Company (London) were told if they did not back the deal the company would collapse.

Shareholders had to vote in favour of Anglo’s 5.5p per share offer, even though some paid 25p per share when the company was growing. Therefore, numerous shareholders were losing out greatly.

Security were present at the meeting to monitor it being that there were threats to directors. This followed online abusive language prior the meeting.

It was questioned why the meeting was held in London when most of the companies investors were based in Yorkshire, as is the company.

As the meeting took off, the board was branded ‘’stubborn and righteous’’, with the offer labelled an insult. One shareholder described their feelings of the situation and as ‘’having a gun put to our head’’.

It is thought that 85,000 small shareholders had invested in the project as well as several large institutional investors.

Depsite the uprising, out of the 1,300(+) parties voting, only 502 investors voted against the deal with 812 approving it hence the conclusive result being that shareholders holding over 80 per cent of the company approved the takeover offer for a total of 2.4 billion shares in Sirius.

Categories: Construction

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