Sirius Minerals has told investors to accept a takeover bid from Anglo American or it could go bust.
The North Yorkshire fertiliser mine whose shares peaked at 44p, has 80,000 retail investors who stand to lose heavily from the lowball takeover offer of just 5.5p a share.
But today, Sirius said: “There is no alternative... If the acquisition is not approved by shareholders and does not complete there is a high probability that the Sirius board will place the business into administration or liquidation.”
Shareholders will vote on whether or not to accept the deal on March 3.
Sirius has also set up a shareholder helpline for its retail investors who have bought into the project.
Many are first-time stock buyers who are unfamiliar with takeover rules and regulations.
Last month Anglo agreed a recommended takeover offer with Sirius’s board. The price values the troubled firm at just £400 million.
Investor Jupiter has urged Sirius to explore other options. Last month Sirius was also in talks with an unnamed consortium of investors who had offered $680 million of debt-based funding.
But today it said the consortium’s offer was not viable.
