Keira Wright
- Trader raises offer for outstanding shares to A$0.60
- Louis Dreyfus already owns 17% of cotton processor’s shares
(Bloomberg) -- Agricultural commodities trader Louis Dreyfus Co. has sweetened its offer for Namoi Cotton Ltd. with a takeover bid that, excluding an announced dividend, values the Australian processor at A$123 million ($81 million), topping a rival proposal from a unit of Olam Group last month.
LDC, which holds a 17% stake in Namoi, had in January announced an agreed deal to buy the shares it didn’t already own for A$0.50 per share in cash, adjusted for a dividend of 1 Australian cent per share to be paid after the takeover. That offer, however, was bested by Olam Agri Holdings Ltd., which in late March offered 59 Australian cents, including a special dividend of 1 cent per share.
Under the off-market takeover offer laid out on Monday, LDC will pay A$0.60 per share, exclusive of the 1 cent per share dividend, according to a statement from Namoi, which said its independent directors intended to recommend the proposal. Including the payout, the LDC offer is worth A$0.61 per share.
LDC’s fresh proposal drove Namoi shares up by as much as 6.7% in Sydney on Monday, to their highest intraday level since June 2007. They were changing hands at A$0.64 — marginally above LDC’s bid — at around noon local time.
Samuel Terry Asset Management Pty Ltd., Namoi’s largest shareholder with a 23.3% stake, says it intends to accept the offer unless a superior bid is made. The fresh offer amounts to a 69% premium to Namoi’s closing price on Nov, 27 of A$0.355, the last trading day before Louis Dreyfus’ initial approach to the Namoi board.
Olam Group was not immediately available for comment.
--With assistance from Jackie Edwards.
Πηγή: Bloomberg