Global agriculture firm Louis Dreyfus Company is on track to be the new owner of Australia’s largest ginning business Namoi Cotton Limited.
It comes as Namoi’s executive chairman Tim Watson confirmed in a new ASX release today 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 2, LDC held 48.68 per cent of the Namoi business, up from 47.66 per cent earlier this week.
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.
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.”
The independent directors have since unanimously recommended that current Namoi shareholders accept the LDC offer, in the absence of a superior proposal and subject to the independent expert continuing to conclude that the LDC Offer is fair and reasonable.
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).