Olam Agri increases offer to acquire Namoi at A$0.70 per share

SINGAPORE: Olam Agri, the agriculture arm of Olam Group, has increased its offer price to acquire Namoi Cotton Limited, raising the initial price to A$0.70 (approx. S$0.62) per share, up from the previous A$0.66 (approx. S$0.59).

Singapore Business Review (SBR) reported that the company said in a bourse filing that “the offer price applies regardless of whether or not Olam obtains a relevant interest in at least 90% of Namoi shares before the end of the offer period.” However, three conditions must be met, including Olam obtaining at least 50.1% ownership of Namoi shares.

Olam’s new offer surpasses the recent bid made by Louis Dreyfus Company Melbourne Holdings (LDC), which stood at A$0.67 (approx. S$0.60) per share. Olam emphasises that its offer provides a “very attractive premium” compared to Namoi’s trading price before the acquisition talks began.

Backing Olam’s proposal is Samuel Terry Asset Management (STAM), a significant Namoi shareholder that holds a 25% stake.

STAM has voiced support for Olam’s bid and encourages Namoi’s board to engage with the offer. They’ve also indicated their intention to accept Olam’s offer.

According to the company, “STAM intends to accept the offer in respect of all the Namoi shares that it holds as of the date of acceptance.”  /TISG

Read also: Olam Food Ingredients secures S$665.29M financing backed by SACE