Namoi Cotton's largest shareholder backs improved Olam takeover bid
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More news: Namoi Cotton's largest shareholder Samuel Terry Asset Management has encouraged the Queensland-based cotton operator to engage with Olam Agri over its latest takeover bid.
Samuel Terry, which holds a 25% voting power in Namoi, backed Olam's previous bid last week.
However, rival suitor Louis Dreyfus Company, which holds a 16.99% stake in the cotton ginner, rejected Olam's bid before tabling a higher offer on Tuesday.
Namoi shares were up 3.4% to $0.76 at 2:20pm AEST, having gained over 15% in the last week.
Namoi Cotton jumps as Olam lifts bid in takeover tussle
The news: Singapore’s Olam Agri Holdings has again lifted its bid for Namoi Cotton as it battles with French agri commodities giant Louis Dreyfus Company (LDC) to take control of Australia’s top cotton ginner.
The numbers: Olam said on Wednesday it would lift its all-cash offer price to 70 cents a share, removing the 90% acceptance condition on its previous offer.
It comes a day after rival suitor LDC improved its takeover bid to 67 cents a share.
Namoi shares were up nearly 5% to 76.5 cents in early trading, indicating the market may be expecting the takeover tussle to run further.
The context: Namoi Cotton’s board, which had previously thrown its support behind LDC, is yet to take a decision on the latest developments. Largest shareholder Samuel Terry Asset Management has also not disclosed its intention.
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 source: ASX announcement
