Australia’s Namoi Cotton asks investors to accept Olam Agri’s $96 million bid

Namoi Cotton on Friday asked its shareholders to settle for Singapore-based mostly totally mostly agribusiness Olam Agri’s A$144.9 million ($96.08 million) takeover offer for the cotton processing firm.

The affiliate Singapore’s Olam Neighborhood and Dutch commodity carrier provider Louis Dreyfus Firm (LDC) were engaged in a global bidding war to grab reduction watch over of Namoi, which would attend them lengthen their footprint in Australia.

Olam already owns ginning amenities in ingredients of the nation, whereas LDC previously obtained U.S.-based mostly totally mostly Dunavant Enterprises’ cotton operations in Australia.

Final week, Namoi had asked shareholders to reject Louis Dreyfus’ A$138.6 million offer, announcing it used to be no longer gorgeous and reasonable in gentle of Olam’s offer.

An independent knowledgeable acknowledged Olam Agri’s A$0.70 per fragment offer is at a top price to LDC’s expose and presents money sure wager, the firm acknowledged.

LDC, which has increased its stake in Namoi to 18.02 per cent, has additionally acknowledged this may possibly possibly presumably maybe no longer settle for Olam’s offer with appreciate to any of the shares it holds.

Nonetheless, Samuel Terry Asset Administration, Namoi’s largest shareholder with a 25 per cent stake, has acknowledged it intends to settle for Olam’s offer.

($1 = 1.5081 Australian greenbacks)