Australia’s Namoi Cotton asks investors to accept Olam Agri’s $129.8 million bid
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Namoi had asked shareholders to reject LDC’s A$138.6 million offer, saying it was not fair and reasonable in the light of Olam’s offer.
PHOTO: BLOOMBERG
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SYDNEY – Namoi Cotton on May 31 asked its shareholders to accept Singapore-based agribusiness Olam Agri’s A$144.9 million (S$129.8 million) takeover offer for the cotton-processing company.
Singapore’s Olam Group and Dutch commodity merchant Louis Dreyfus Company (LDC) have been engaged in an international bidding war to take control of Namoi, which would help them expand their footprint in Australia.
Olam already owns cotton-ginning facilities in parts of the country, whereas LDC previously acquired US-based Dunavant Enterprises’ cotton operations in Australia.
Last week, Namoi had asked shareholders to reject LDC’s A$138.6 million offer, saying it was not fair and reasonable in the light of Olam’s offer.
An independent expert said Olam Agri’s offer of 70 Australian cents per share is at a premium to LDC’s bid and provides cash certainty, the company said.
LDC, which has increased its stake in Namoi to 18.02 per cent, has said it will not accept Olam’s offer with respect to any of the shares it holds.
However, Samuel Terry Asset Management, Namoi’s largest shareholder with a 25 per cent stake, has said it intends to accept Olam’s offer.
Both the rival offers are subject to the bidders acquiring a 50.1 per cent stake in Namoi. REUTERS
