LDC rejects Namoi Cotton takeover bid from rival suitor Olam
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The news: Louis Dreyfus Company (LDC) has said it will not accept the revised takeover offer by Singapore-based agribusiness Olam Agri for Queensland cotton operator Namoi Cotton.
The numbers: French agri commodities firm LDC is Namoi's second-largest shareholder with a 16.99% stake. It also operates a joint venture with the Australian company.
On Wednesday, shares in ASX minnow Namoi saw a double-digit rise as the company's largest shareholder Samuel Terry Asset Management, which holds a 24.2% interest, said it was supportive of Olam's increased takeover offer.
Olam's latest offer of 66 cents per Namoi share, rising to 70 cents per Namoi share if it obtains a 90% stake before the end of the offer period, topped LDC's own takeover proposal of 60 cents per share tabled on Monday.
Namoi shares were unchanged in early trading on the ASX at $0.72.
The context: Olam is majority owned by SGX-listed Olam Group and has a presence in Australia through its wholly owned subsidiary Queensland Cotton, which it acquired in 2007. Its parent company Olam Group also employs over 550 people in Australia through its almond orchards and processing businesses.
The source: ASX announcement
