AAL Anglo American Plc

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)

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