Louis Dreyfus makes Takeovers Panel application over Namoi acquisition tussle
Make us a preferred source
Make us a preferred source on Google
The news: Louis Dreyfus Company Melbourne (LDC) has made an application to the Takeovers Panel in relation to its takeover tussle with Olam Agri for Namoi Cotton as it believes a recent stake sale has breached the Corporations Act.
The numbers: Last week, Olam entered into a binding deed with Namoi’s largest shareholder Samuel Terry Asset Management to acquire 7.92% of Namoi. It also entered another deed with shareholder Harvest Lane Asset Management to acquire 2.07% of Namoi.
The deals lifted Olam’s stake in Namoi to 16.34% from 6.02% while LDC has a 21.3% stake in Namoi.
The context: In its application, LDC said the stake acquisitions were unacceptable as it prevented an “efficient, competitive and informed market in Namoi shares”.
LDC claimed Namoi shareholders, including those who had accepted Olam’s offer, did not have a reasonable and equal opportunity to sell their shares unconditionally to Olam as opposed to through the Olam offer which was highly conditional and uncertain.
LDC also claimed there had been a breach of the Corporations Act given the asset managers had received a collateral benefit — the unconditional and immediate sale of the blocking stake to Olam.
The company sought interim orders preventing the blocking stake sale if it had not been completed; and Olam acquiring any shares or increasing its voting power in Namoi until the application was determined.
It also sought final orders to either prevent the blocking stake sale if it had not been completed; and required that Olam give five business days notice before it proceeded with on-market acquisitions of Namoi shares while its takeover offer was still conditional and give shareholders who had accepted its offer to withdraw.
The source: Takeovers Panel
