BENGALURU – Singapore’s Olam Agri Holdings said on May 2 it was planning to make an off-market bid for Australia’s Namoi Cotton for A$136.6 million (S$121.3 million), which would be subject to the suitor acquiring at least a 50.1 per cent stake in the target firm.
The new bid came just a few months after global commodity merchant Louis Dreyfus Company first made a cash offer to acquire the 83 per cent of issued shares in Namoi that it does not already control.
Under the new bid, Olam’s offer price would be A$0.66 per share, higher than the Dreyfus’ A$0.60 rival offer.
Olam Agri, a unit of agri-business firm Olam Group, said it would propose to increase the value of its offer to A$0.70 per share if it obtained a 90 per cent stake of Namoi before the offer period ends.
The planned off-market offer differed from Olam’s takeover offer structure as it was originally proposed under Olam’s non-binding indicative offer early in 2024, Olam said, adding that the off-market bid was to provide simplicity and certainty for Namoi shareholders.
“Olam has successfully completed its confirmatory due diligence and is pleased to formalise its intention to acquire Namoi’s shares,” Olam’s group chief executive officer Sunny Verghese said in a statement. REUTERS
