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Olam Agri increases offer for Namoi Cotton – again

Manufacturing News

Two international companies are locked in a heated takeover battle for control of Australia’s largest locally owned cotton processor, Namoi Cotton, with the bidders leapfrogging each other to dangle a bigger carrot in front of the company’s shareholders.

Earlier this month Olam Agri Australia offered 66 cents a share for Namoi, trumping Louis Dreyfus Company Asia Pte Ltd’s (LDC) recently increased offer of 60 cents.

Then, Olam held out the carrot of 70 cents a share to be paid to all shareholders – irrespective of when they sold their shares – should Olam reach control of 90 percent of the shares in Namoi.

However now Olam has dropped the 90 percent proviso and offered all Namoi shareholders 70 cents a share.

Conditions of the offer remain the sale, that Olam achieves more than 50.1 percent of Namoi shares and achieves approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission, likely formalities in this case.

Namoi is one of the few elements of value adding left in Australian ownership in the cotton industry, operating 10 cotton gins on the east coast and in Northern Western Australia.

Further reading:
Battle for control of Namoi Cotton hots up

Picture: Olam Agri Australia

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