Namoi Cotton directors back Olam takeover offer
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The news: The independent directors at Australia’s top cotton ginner Namoi Cotton have unanimously recommended Olam Agri Holdings’ takeover offer to shareholders.
The numbers: Singapore-based Olam bid to acquire all of Namoi shares for 70 cents each, trumping a rival 67 cents/share bid by French agri commodities giant Louis Dreyfus Company (LDC).
LDC, which last week lifted its stake in the company to 18.02%, said in a separate statement it had extended the closing date of its offer to 21 June.
The context: Namoi Cotton’s independent directors recommended Namoi shareholders accept Olam’s offer in the absence of a superior bid. They said independent expert BDO Corporate Finance had also concluded the Olam offer is “fair and reasonable” as at the date of the supplementary disclosure.
Namoi's largest shareholder Samuel Terry Asset Management, which holds a 24.2% interest, has previously backed Olam’s offers.
LDC is Namoi’s second-biggest shareholder and also operates a joint venture with the Australian firm.
Earlier this month, the competitions regulator outlined competition concerns with LDC's proposed acquisition, saying the deal would likely substantially lessen competition in the supply of cotton ginning services in the north of Western Australia and Northern Territory.
The sources: ASX announcement, ASX announcement
