Dutch crop trader Louis Dreyfus raised its buyout offer for Namoi Cotton on Tuesday, with its bid that values the Australian cotton ginning firm at A$159.3 million ($110 million) signalling the end of a months-long bidding war as Singapore’s Olam Agri effectively surrendered arms.
Louis Dreyfus Co (LDC), which also raised its stake in Namoi to 47.66%, increased its offer to 77 Australian cents for each share it did not own, from 68 cents previously.
Samuel Terry Asset Management (STAM), another major investor in Namoi, has backed the revised bid. Namoi urged other shareholders to also accept LDC’s proposal and reject Olam‘s offer of 75 cents per share.
In response, Olam Agri, which has an 8.24% stake in Namoi, said it would not extend its offer beyond a previously set deadline of Oct. 8 and also scrapped a deal to buy a further 7.92% of Namoi shares from STAM.
Namoi‘s shares ended the day 8.5% higher at 77 cents apiece, their highest level since May 14. Their trading was briefly halted in the day due to an exchange issue.
Olam Agri and LDC have been fighting over Namoi since January, with both offers raising competition concerns.
Australia’s competition regulator (ACCC) is yet to clear Olam Agri‘s offer even though it has agreed to divest certain local operations, while they have approved LDC’s bid after the trader agreed to certain divestitures. ($1 = 1.4480 Australian dollars)
