Louis Dreyfus Company lifts bid in tussle for Namoi Cotton
Make us a preferred source
Make us a preferred source on Google
The news: French agri commodities giant Louis Dreyfus Company (LDC) has lifted its bid for Namoi Cotton as it battles to take control of the Australian cotton ginner.
The numbers: LDC said on Monday it would lift its takeover offer price to 60 cents a share, up from its initial offer of 51 cents a share in January.
The latest bid, valuing the company at $123.2 million, trumps a 59 cents a share rival offer from Singapore’s Olam Agri Holdings in March.
Namoi shares were unchanged at 60 cents each in early trading on the ASX.
The context: Namoi Cotton said in a statement to the ASX its board would back the LDC offer subject to no superior offer materialising.
Largest shareholder Samuel Terry Asset Management also said it now intends to accept the LDC bid for its 23.3% holding in the absence of a superior offer.
LDC is Namoi’s second-biggest shareholder with a 16.99% stake and also operates a joint venture with the Australian firm.
Namoi’s assets include cotton gins, grain and cottonseed storage facilities, warehouses and access to rail.
The sources: ASX announcement, ASX announcement
