Join our community of smart investors

Odey buys into Sirius

Asset manager noted that AngloAmerican has not declared its offer 'final'
February 19, 2020

Odey Asset Management says Sirius Minerals (SXX) can squeeze a higher price out of buyer Anglo American (AAL). Crispin Odey’s firm has bought in to the struggling fertiliser mine developer, which has begged shareholders to vote in favour of Anglo’s 5.5p-a-share cash offer next month. 

Sirius says that without the takeover the company is likely to collapse, leaving investors with nothing. The retail-heavy register means the result of the 3 March vote is up in the air, with 75 per cent support needed for the takeover to happen. 

IC TIP: Accept at 5.18p

Henry Steel, manager of the Odey Concentrated Natural Resources Fund, wrote to Sirius management after buying 1.29 per cent of its shares. He said Anglo had not labelled its buyout offer as ‘final’ and so maintained the option to up its bid if another party became involved. 

He also raised the possibility of an “interloper” appearing to save the day for Sirius’s 85,000 retail shareholders, who own about half of the company. Sirius has said it explored a possible $680m (£523m) loan offer in January, but could not find an institutional investor to back the equity raise required by the lender.