Australia's Namoi Cotton asks investors to accept Olam Agri's $96 mln bid (updated)

Namoi Cotton

31/05/2024 24:32

(Updates with background, details in paragraphs 2-7)
       May 31 (Reuters) - Namoi Cotton  NAM.AX  on Friday asked
its shareholders to accept Singapore-based agribusiness Olam
Agri's  IPO-OLAA.SI  A$144.9 million ($96.08 million) takeover
offer for the cotton processing company.
    The affiliate Singapore's Olam Group  OLAG.SI  and Dutch
commodity merchant Louis Dreyfus Company (LDC) have been engaged
in an international bidding war to take control of Namoi, which
would help them expand their footprint in Australia.
    Olam already owns ginning facilities in parts of the
country, whereas LDC previously acquired U.S.-based Dunavant
Enterprises' cotton operations in Australia.
    Last week, Namoi had asked shareholders to reject Louis
Dreyfus' A$138.6 million offer, saying it was not fair and
reasonable in light of Olam's offer.
    An independent expert said Olam Agri's A$0.70 per share
offer is at a premium to LDC's bid and provides cash certainty,
the company said.
    LDC, which has increased its stake in Namoi to 18.02%, has
also said it will not accept Olam's offer with respect to any of
the shares it holds.
    However, Samuel Terry Asset Management, Namoi's largest
shareholder with a 25% stake, has said it intends to accept
Olam's offer.
    
($1 = 1.5081 Australian dollars)

 (Reporting by Sneha Kumar; Editing by Alan Barona and Arun
Koyyur)
 ((Sneha.Kumar@thomsonreuters.com;))