Louis Dreyfus Bids $109mn For Full Takeover Of Namoi Cotton

Singapore-based agricultural group Louis Dreyfus has bid for a full takeover for Namoi Cotton, which is an Australian owned and operated company with the largest network of cotton gins in the country.

Louis Dreyfus currently has a 17 percent stake in Namoi Cotton and is also a partner in two joint ventures with Namoi.

Louis Dreyfus has offered $105 million, which is a non-binding, indicative and conditional offer to acquire the 83 percent of shares of Namoi, it doesn’t already own.

This proposed deal values Namoi at approximately $109 million and has secured exclusive due diligence rights for Louis Dreyfus for a month.

The price being offered by Louis Dreyfus includes a 1 cent dividend, making the cash consideration at 50 cents a share.

Namoi said its major shareholder Samuel Terry Asset Management, which holds a 21.5 percent stake in the company, has already expressed its support for the takeover bid.

The Namoi board also sees the proposal as being in the best interests of all shareholders.

“Combining Namoi’s ginning business with Louis Dreyfus is designed to create a strengthened and sustainable business for our grower customers and staff,” Namoi Cotton Chairman Tim Watson said.

“This proposal builds on our existing relationship with Louis Dreyfus in our lint marketing and warehousing joint venture business for the past ten years,” Watson added