(Bloomberg) -- Sirius Minerals Plc shareholders gave the go-ahead for a takeover by Anglo American Plc, securing the future of a $4 billion potash mine in the north of England.
The deal won approval after a raucous shareholder meeting in London on Tuesday, which was surrounded by tight security after the company warned staff had received threats of violence.
A group of shareholders, who were irate about their losses, threatened to block the takeover, but ultimately failed to gain enough support. Hedge fund Odey Asset Management also agitated against the Anglo deal.
The vote was the final step to sealing a deal for Sirius, which was on the brink of collapse until Anglo offered 5.5 pence a share last year to buy the company -- far below the price most retail investors had paid. The stock jumped 17% to 5.49 pence as of 9:38 a.m. on Wednesday.
In a meeting that dragged on for almost three hours yesterday, the Sirius board faced a barrage of hostile questions. Most shareholders were angry about the offer price, calling it a pittance and disgusting.
“The failure to get the funding and the pathway forward is the greatest failure of my career,” said Chris Fraser, the chief executive officer at Sirius. He repeatedly defended the deal as the only viable option for the business.
For northern England, which has suffered from a loss of manufacturing jobs, securing the deal will be a relief. The acquisition adds a new project for Anglo, which has been aggressively expanding its mining portfolio.
Overlooking the seaside town of Whitby, the setting for part of Bram Stoker’s “Dracula,” Sirius has already started work on two giant shafts and a 37-kilometer (23-mile) tunnel to transport the potash to the port at Teesside.
To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net
To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Nicholas Larkin
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