SHARES in embattled Sirius Minerals surged yesterday after shareholders approved a £405m takeover by mining giant Anglo American.

Within minutes of the FTSE opening, Sirius' stock had risen over 17 per cent as investors rushed to buy stock in the firm, which was rescued from potentially having to close its potash mine in Yorkshire by a vote of 80.3 per cent to 19.7 per cent. Shares closed up 17.5 per cent.

The vote, the result of which was announced shortly before 9pm on Tuesday, followed an at times turbulent meeting between the company's executives and its shareholders, many of whom had invested their life savings into the company.

Most of Sirius' investors bought in at around 25p, but in January Anglo American made a 5.5p per share offer for the firm, which has been in desperate need of new funding after alternative arrangements fell through in September.

"The positive outcome from today's meeting secures a return for shareholders, and provides greater certainty in terms of safeguarding the project, protecting the jobs of our employees, and allowing the community, region and the UK to continue to benefit from the project," Sirius chairman Russell Scrimshaw said after the meeting.

(c) 2020 City A.M., source Newspaper