Global agriculture business Olam Agri has extended its takeover offer of Australian cotton ginning business Namoi Cotton Limited by a month.
Namoi shareholders will now have until July 16 to consider Olam’s offer of $0.70 cents per share, alongside a $0.67 cents per share takeover offer launched by Louis Dreyfus Company.
Olam’s extension comes as its stake in Namoi increases to over 2.2 per cent.
Latest reports show that LDC already has more than an 18 per cent stake in Namoi Cotton, which had risen from 16.99 per cent following its own bid of $0.67 cents per share.
Olam had tabled a higher offer of $0.70 cents per share, which Namoi’s independent directors approved of and called on other shareholders to accept. In the same swoop, Namoi told shareholders to reject LDC’s takeover offer.
Olam Agri is headquartered in Singapore, but operates eight subsidiaries across Australia. This includes Queensland Cotton, its largest Australian subsidiary.