The Melbourne-based subsidiary of international agriculture business Louis Dreyfus Company has upped its takeover bid of Australian ginning business Namoi Cotton Limited, surging ahead of global agribusiness Olam Agri’s cash per share offer announced last week.
Louis Dreyfus has upped its cash per Namoi share offer to $0.67, up from $0.60, and ahead of Olam’s latest offer of $0.66 per share.
On April 29 this year, LDC entered into an agreement with Namoi with respect to LDC’s intention to make the offer to Namoi shareholders. On the same day, each director of Namoi - other than Sarah Scales who is reportedly abstaining - together, the independent directors said they intended to recommend that Namoi shareholders accept LDC’s offer under the original bidder’s statement at the offer price of $0.60 per Namoi Share.
On May 2, Olam made its own takeover offer for Namoi at $0.66 cash per Namoi Share, subject to obtaining a relevant interest in at least 50.1 per cent, with a proposed increase to $0.70 cash per Namoi Share if Olam obtains a relevant interest in at least 90% of the Namoi Shares before the end of its offer period.
LDC Group holds a 16.99 per cent relevant interest in Namoi and announced on May 3 that it will not accept Olam’s offer with respect to any of its Namoi shares.
LDC sought confirmation from Namoi on May 6 that each of its independent directors intends to continue to recommend that Namoi shareholders accept the now-increased offer at $0.67 per Namoi share. As of May 7, this confirmation has not yet been received.
Louis Dreyfus Company in Melbourne is a wholly owned subsidiary of Louis Dreyfus Company B.V. which collectively with its subsidiaries is the LDC Group.
Founded in 1851, the LDC Group has grown to be an international merchant and processor of agricultural goods.
Its activities span the entire supply chain - from farm to fork - across a broad range of business lines- or platforms - such as carbon solutions, coffee, cotton, food and feed, freight, grains and oilseeds, juice, rice and sugar.
The LDC Group is active in over 100 countries across six geographical regions, and employs approximately 18,000 people globally.
Olam Agri operates in over 30 countries globally, including Australia with its wholly owned subsidiary Queensland Cotton. It covers many similar key areas as LDC Group, as well as rubber, wood products and specialty grains and seeds.