Sirius Minerals — Merger or Acquisition (December 2020)
24 slides from Sirius Minerals's merger presentation, Dec 8, 2020
Slide 1: Sirius Minerals: Post takeover review, lessons learned and next steps
SIRIUS MINERALS Post takeover review, lessons learned and next steps Cliff Weight | Chris Spencer-Phillips Paul Anscombe | Mark Northway 5pm, 8 December 2020 UK Individual Shareholders Society www.sharesoc.org
Slide 2: Important Information
Important Information No warranty is given by ShareSoc as to the reliability, accuracy or completeness of the information provided in presentations to investors by companies or by ShareSoc representatives in seminars or other meetings organised or sponsored by ShareSoc. The information given in such
Slide 3: Welcome to ShareSoc
Welcome to ShareSoc • ShareSoc is a not-for-profit membership organisation • For individual investors, with c 6,000 members • We campaign • Government, Regulators, • Companies • We inform • Investor Webinars, Seminars and Visits, Monthly Newsletters, • Blogs, AGM and remuneration reports • We educat
Slide 4: ShareSoc Webinar Sirius Mineral
ShareSoc Webinar Sirius Mineral • Asking questions
Slide 5: Introduction
Introduction • www.sharesoc.org/campaigns/sirius/ • 85,000 unhappy shareholders, many of whom have lost very significant sums from their investment. • Unusually high (>50%) of shares held by individuals – but no representation. • A lot of noise and anger, but Sirius Board was not listening to shareh
Slide 6: Sirius Minerals - ups, downs and across
Sirius Minerals - ups, downs and across Timeline----------------------------> 2008 York Potash 2011 Sirius Minerals acquires York Potash 400 Local licences /agreements signed 2015 Planning permission-by 1 vote 2016 Gina Rinehart $300m funding £370m equity and $400m convertible admission to Main Mark
Slide 7: Recent Share Price history
Recent Share Price history • Rose from <3p to 51p high in 2016 • 2016 Rights Issue • 2019 Rights Issue and Bond Raise • Rapid decline from 36p to 3p, then 5.5p takeover
Slide 8: Survey of ShareSoc Sirius members
Survey of ShareSoc Sirius members Location 45% Elsewhere in the UK Outside the UK 53% Yorkshire 2%
Slide 9: Survey of ShareSoc Sirius members
Be ne fit s to lo ca la re Be Be a an 0% 10% 20% 30% 40% 50% 60% ne ne fit d/ fit s s or fo to re U gi Lo re K on ng nv /“ U 44% -te t & K rm fo co in od m ve su pa In st pp ny ve m ly ” e 15% st (b m nt /p ey en on tr en et si d ur o n lo Ju n s /t ca l… o 9% (w dg ed ith h el it ou p sa t m ch Pe
Slide 10: Survey of ShareSoc Sirius members
Survey of ShareSoc Sirius members Investor Features- Unprompted comments - probably understates true position 5% 5% 4% 4% 3% 2% 2% 2% 1% 1% 0% First time Invested in Large holding Major financial Have already investor SSX multiple or other sold at times personal significant loss impact mentioned
Slide 11: Survey of ShareSoc Sirius members
Survey of ShareSoc Sirius members How the Investor first heard of Sirius Minerals 35% 31% 30% 25% 24% 20% 15% 15% 12% 10% 10% 9% 10% 5% 3% 1% 0% Local National or Hargreaves Bulletin Friends, Local word Direct SSX Worked Other media unspecified Lansdown / boards / colleagues, of mouth or publicity t
Slide 12: Survey of ShareSoc Sirius members
Survey of ShareSoc Sirius members When did you first start to invest in other shares? 6% 10-20 years ago 33% 2-5 years ago 30% 5-10 years ago I have never owned any other shares Over 20 years ago Within the last two years 3% 17% 11%
Slide 13: Survey of ShareSoc Sirius members
Survey of ShareSoc Sirius members Self-classification: investing skills 6% 12% 16% Experienced Investor Intermediate Investor Simple Investor Total Novice 66%
Slide 14: Survey of ShareSoc Sirius members
Survey of ShareSoc Sirius members How many other different shares do you own? 3% 6% 26% Currently own shares in between 10 and 20 companies Currently own shares in over 20 companies Currently own shares in under 10 companies No plans to own shares in future 48% No shares now but plan to buy 17% more
Slide 15: Survey of ShareSoc Sirius members
Survey of ShareSoc Sirius members Max proportion of total equities held in Sirius shares 9% 14% 1-10% 12% 10-20% 20-30% 30-50% 38% 7% over 50% Under 1% 20%
Slide 16: Lessons learnt – Teamwork
Lessons learnt – Teamwork • Many people did great job in getting people involved and over 2,500 joined the Facebook forum. • ShareSoc provided structure, processes and professionalism to ensure shareholders views were heard by Sirius, Anglo and the Press. • ShareSoc facilitated meetings of sharehold
Slide 17: Lessons learnt – Be clear on goals
Lessons learnt – Be clear on goals and what might be possible • We gave you a voice in the following other ways: • In the Press, via our links with journalists. • Via meetings of shareholders and Sirius, and shareholders and Anglo.
Slide 18: Lessons Learnt – Planning
• Start Earlier! Lessons • We could have done more if we had got involved earlier Learnt – • [21% voted no]. We could have voted down the proposals, but the Planning nominee system of share ownership did not help. • Contentious area for guidance - if voted down shareholders may have got 0p, instead
Slide 19: Lessons Learnt – Proxy Agents
Lessons Learnt – Proxy Agents • Anglo employed Georgeson who were very effective in getting over 800 members on the register to vote. • We needed resources to be able to communicate to shareholders and law changes to talk to those who hold via nominee
Slide 20: Sirius Claim
Sirius Claim By Paul Anscombe, Chairman Sirius Claim Group www.SiriusClaim.com
Slide 21: Sirius Claim Group
q Created following the Anglo American takeover q Objectives Sirius § Gather materials including: § Regulatory News announcements (RNS) § Key documents § Webcasts Claim § Collate and review § Huge task involving thousands of materials Group § Assess legal potential § Find potential legal partners §
Slide 22: Sirius Claim
Sirius Claim Current Status Legal Potential Legal Costs Held a pre-meet with a Legal partners will need to Potentially very large costs legal firm assess and confirm to consider Review process almost Have to assess against Will work with legal/ complete who, for what, potential finance partners for
Slide 23: Sirius Claim – Funding & Governance
Sirius Claim – Funding & Governance Sirius Claim Claim ShareSoc Committee Legal Claimants Law Firm Funder Governance Endorsement of chosen law firm by ShareSoc Legal funding. No costs to claimants. Insurance to protect Claimants. Importance of Counsel’s Views.
Slide 24: Questions
Questions ? 50%+ retail? Hype? V overhype? Best buy lists? Local economy? Northern Powerhouse? Government support? UK Individual Shareholders Society www.sharesoc.org
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