Sirius investors face a stark choice over Anglo deal – MIDAS explains what you should know
For small shareholders, Sirius Minerals has been one of the greatest disasters in living memory.
More than 80,000 have poured hard-earned cash into the project, lured by the idea of taking part in a world-class mining project, transforming the economic prospects of North Yorkshire and making money for themselves at the same time.
The first two ambitions remain a possibility. The third appears all but impossible.
Sirius investors: Life savings have been wiped out, hopes have been shattered and there is a palpable sense of anger across the small shareholder community
Chris Fraser, the chief executive of Sirius, has recommended a 5.5p-a-share offer from mining giant Anglo American and shareholders have just a few days left to back it or reject it.
Sirius shares have rollercoastered over the past decade, going from 5p to nearly 40p then back to 5p.
However, most investors bought when the stock was in double digits so they will be nursing heavy losses if the Anglo deal goes ahead.
Life savings have been wiped out, hopes have been shattered and there is a palpable sense of anger across the small shareholder community.
Many feel tempted to vote against the Anglo deal. Are they right?
MIDAS VERDICT: Sirius shareholders face three options: sell in the open market, vote for the admittedly low Anglo deal or reject it.
In the absence of a counterbidder, a vote in favour is the logical choice. But thousands of investors are threatening to vote against, which could mean all shareholders are wiped out.
Those wanting certainty may therefore prefer to sell in the open market – that way they will, at least, receive something.