Namoi shares dip on takeover recommendation backflip
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Namoi Cotton were down 2.2% to 67 cents after independent directors at Australia’s top cotton ginner recommended shareholders vote in favour of an unconditional takeover offer from Louis Dreyfus Company (LDC) and reject a higher bid from Olam Agri.
The directors backed LDC's lower 67 cents a share bid saying it provided shareholders an opportunity to realise certain value.
The recommendation was a backflip as it previously endorsed Olam's bid.
Namoi Cotton directors back LDC takeover offer
The news: The independent directors at Australia’s top cotton ginner Namoi Cotton have unanimously recommended French agri commodities giant Louis Dreyfus Company’s takeover offer to shareholders.
The numbers: Namoi’s independent directors said they had reversed their previous recommendation and would now back LDC’s 67 cents a share offer over rival bidder Olam Agri Holdings’ higher 70 cents a share offer because it provided shareholders an opportunity to realise certain value.
Olam had previously extended the date for its offer for Namoi to 8 October.
The context: The latest move follows LDC’s offer becoming unconditional after the group received clearance from the competition regulator ACCC as well as the Foreign Investment Review Board.
LDC, Namoi’s second-biggest shareholder, has been locked in a tussle for the Australian company with Singapore’s Olam. The competition regulator raised preliminary competition concerns over Olam’s bid but is yet to deliver a final verdict.
Namoi's largest shareholder Samuel Terry Asset Management, which holds a 24.2% interest, has previously backed Olam’s offer.
The source: ASX announcement
