Sirius Minerals share price soars after Anglo American weighs £386 million rescue deal
The UK-based fertiliser development company has seen its shares climb more than 30% on Wednesday morning as it entered advanced talks with Anglo American over a potential rescue deal.
Sirius Minerals has seen its share price rally by more than 30% on Wednesday morning due to a last-minute rescue bid from Anglo American that could save the company from the brink of collapse.
The British multinational mining company said that it was in ‘advanced discussions’ with Sirius Minerals over a potential cash offer for the business of 5.5p a share, valuing the Yorkshire-based fertiliser developer at approximately £386 million.
Looking to trade Sirius Minerals? Open a live or demo account with IG.
Sirius Minerals management recommends Anglo American offer to shareholders
The deal on the table by Anglo American equates to a 34.1% premium to the stock’s closing price on Monday.
Sirius Minerals management said in a statement on Wednesday that Anglo American’s offer of 5.5p will be recommended at that price to shareholders, so long as it can secure assurances around jobs and other ‘stakeholder interests’.
Under UK takeover rules, Anglo American has until February 5 to make a firm offer for Sirius Minerals or wait six months to return with another offer.
‘Anglo American believes that the possible offer could provide certainty to Sirius’ shareholders, whilst Anglo American brings the financial, technical and marketing resources and capabilities to progress the project over time,’ Anglo American said in a statement.
‘This should also be in the interests of Sirius’ broader stakeholders including employees and customers.’
You can long or short Sirius Minerals with IG using derivatives like CFDs.
Anglo American offers lifeline to Sirius Minerals
The rescue deal on the table represents a lifeline for Sirius Minerals, a company that has struggled to raise the necessary funds it needs to complete its two-stage mining development.
The project involves creating two 1.5km shafts and transporting materials from the site to a port on Teeside via a 37km tunnel.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.