Olam will not extend Namoi takeover bid; Louis Dreyfus ups rival offer to A$0.77 per share
OLAM Agri Australia will not declare its takeover offer for Australia’s Namoi Cotton free from its conditions, nor will it extend its offer beyond the closing date on Oct 8, 2024.
On Tuesday (Oct 1), the indirect 64.6 per cent-owned subsidiary of Olam Group said Namoi shareholders who have accepted the offer will retain ownership of their shares after its offer lapses, and will be free to deal with them.
“Olam Agri, together with its subsidiary Queensland Cotton, is an integral participant in the Australian cotton industry. We hope that our interest in acquiring Namoi Cotton is seen as a testament to Olam Agri’s willingness to invest in the Australian agriculture industry,” said Ashish Govil, who is managing director, Queensland Cotton and country head for Olam Agri Australia.
Govil added said Olam’s proposed acquisition “led to a robust and competitive process” for Namoi – allowing the cotton ginner to “realise a full and fair valuation for the benefit of all shareholders”.
Olam’s announcement comes after Namoi’s largest shareholder Samuel Terry Asset Management accepted Louis Dreyfus Company Melbourne’s sweetened offer for the company at A$0.77 per share from A$0.68 earlier.
This brings Louis Dreyfus’ stake in Namoi to 47.66 per cent after receiving acceptances of 30.63 per cent under its offer as at Sep 30, 2024, said the French merchant firm in a Tuesday filing to the Australian Securities Exchange.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Olam’s offer – which was most recently raised to A$0.75 per share from A$0.70 – remains conditional and subject to regulatory approvals, as well as to receiving acceptances of at least 50 per cent.
In its bidder’s statement, Louis Dreyfus noted “significant risks” that such conditions would not be satisfied at all or within Olam’s offer period, as it would be “extremely difficult” for Olam to satisfy the minimum acceptance condition.
The company also underscored Olam’s “inferior offer price”, noting how Olam only received acceptances under its takeover offer for 6.35 per cent of Namoi shares.
Shares of Olam were unmoved at S$1.12 as at 1.20pm on Tuesday, after the news.
