LDC hikes stake in Namoi Cotton after directors back Olam bid
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The news: French agri commodities group Louis Dreyfus Company (LDC) has bought up more shares in Namoi Cotton, after the cotton ginner's independent directors backed a rival bid by fellow suitor Olam Agri Holdings.
The numbers: Between 13 September and 20 September, LDC raised its voting power in the company from 21.3% to 22.32%, buying up 2.1 million Namoi shares at 67 cents per share, as per its latest takeover offer.
The context: LDC and Singapore-based Olam have both built up their interests in Namoi during a months-long bidding war for Australia's top cotton ginner.
On 13 September, Olam bought up a 9.9% interest in Namoi, taking its shareholding from 6.02% to 16.34%. Last week, LDC made an application to the Takeovers Panel, claiming the stake acquisitions by Olam breached the Corporations Act, preventing an "efficient, competitive and informed market in Namoi shares".
Namoi's independent directors have recommended that shareholders vote in favour of Olam's latest bid of 75 cents per Namoi share. Olam's proposal also has the backing of major shareholders Samuel Terry Asset Management and Harvest Lane Asset Management.
The source: ASX announcement
