Louis Dreyfus Company secures controlling share of Namoi Cotton
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More news: French agri commodities group Louis Dreyfus Company (LDC) has secured control of long-time takeover target Namoi Cotton, after increasing its voting power in the cotton ginner to more than 50%.
It follows the decision by each of Namoi's independent directors to sell their shares into LDC's latest takeover offer, after rival suitor Olam Agri effectively pulled out of the bidding war on Tuesday.
LDC urged shareholders to "act quickly while the offer remains open" and encouraged those who had previously accepted Olam's bid to withdraw and accept LDC's offer instead.
LDC's offer of 77 cents per Namoi share is scheduled to close on 9 October.
What they said: "We are delighted that the independent directors of Namoi have unanimously recommended our offer and subsequently accepted their shares into our offer," LDC's managing director for Australia Tony Geitz said.
"Our offer is at a very significant premium, being 117% higher than the undisturbed Namoi share price on November 27."
Namoi Cotton's directors sell shares into LDC's takeover bid
The news: Namoi Cotton's independent chair Tim Watson, and each of the ASX-listed cotton ginner's independent directors who hold a stake in the company, have sold their shares into the latest takeover offer by Louis Dreyfus Company (LDC).
The numbers: The acquisition of the director shares has led French agri commodities giant LDC to increased its voting power in Namoi from 47.66% to 48.68%, after hiking its stake from 22.32% on Tuesday.
On Tuesday, Namoi's independent directors announced their unanimous support for LDC's 77-cent-per-share bid, after rival suitor Olam Agri said it would not top the latest offer.
Meanwhile, Singapore-based Olam terminated its share purchase agreement with fellow shareholder Samuel Terry Asset Management, which will see its holding in Namoi reduce from 16.34% to 8.24%.
The context: LDC's offer is scheduled to close on 9 October, unless further extended by the company. LDC’s proposed acquisition has received clearance from the Australian Competition and Consumer Commission (ACCC) as well as the Foreign Investment Review Board.
The sources: ASX announcement, ASX announcement, ASX announcement
