The Melbourne subsidiary of global agricultural firm Louis Dreyfus Company has secured control of Namoi Cotton Limited after its shareholding in the business and voting power increased above 50 per cent yesterday.
It comes as Namoi’s executive chairman Tim Watson confirmed in a recent statement that he has sold all his Namoi shares into the new LDC offer, currently sitting at $0.77 per share. Alongside Watson, each of the independent directors who hold Namoi shares have also sold these into the LDC offer.
On the morning of October 3, LDC held 60.5 per cent of the Namoi business, up from 47.66 per cent earlier this week.
“We are delighted that the independent directors of Namoi have unanimously recommended our offer and subsequently accepted their shares into our offer,” LDC Australia managing director Tony Geitz said.
“Our offer is at a very significant premium, being 117 per cent higher than the undisturbed Namoi share price on November 27. It provides shareholders with outstanding returns and a unique opportunity to capitalise on significant value immediately.”
Meanwhile, the competing Olam Agri, another global agricultural firm which had also been vying to take over Namoi, had decided not to extend its takeover bid for Namoi Cotton following recent developments. The firm had lifted its takeover bid to $0.75 per share, which was briefly accepted by the Namoi board, but had ultimately switched once LDC bumped it’s bid up to $0.77 per share.
Olam Agri Australia country head and Queensland Cotton MD Ashish Govil said he and his team hoped that its interest in acquiring Namoi is a testament to Olam’s willingness to invest in the Australian agriculture industry.
“The proposed acquisition led to a robust and competitive process for Namoi Cotton, allowing the company to realise a full and fair valuation for the benefit of all shareholders,” Govil said. “We thank the Namoi Cotton board, shareholders and all stakeholders who have been supportive of Olam Agri throughout this period.
“Olam Agri strives to continuously improve the efficiency and commercial viability of Australian cotton growing, ginning and merchandising. We remain committed to the Australian agriculture landscape with further growth plans to transform food, feed and fibre for a more sustainable future.”
Geitz said that with Olam’s decision to let its offer lapse, LDC’s unconditional offer is the only offer available for Namoi shareholders to accept. Olam’s offer was still faced with an ongoing investigation from the ACCC and the FIRB, meaning its offer is still conditional.
“We urge shareholders to follow the independent directors’ actions and act quickly while the offer remains open, as shareholders who accept can expect to receive payment within 10 business days.
“Importantly anyone who has accepted Olam’s offer is able to withdraw their acceptance and accept LDC’s offer and we encourage them to do so.”
The LDC Offer is scheduled to close at 7.00pm (Sydney time) on Wednesday, October 9, 2024, unless further extended by LDC or otherwise extended in accordance with the Corporations Act 2001 (Cth).