Australia’s Namoi Cotton (NAM.AX) has officially recommended that its shareholders vote in favor of the A$138 million ($91.81 million) takeover offer from Dutch crop trader Louis Dreyfus Company (LDC). This recommendation comes as Namoi urges shareholders to reject a higher bid of A$144 million from Olam Agri, an affiliate of Singapore’s Olam Group, which remains contingent on multiple conditions.
The assurance that LDC’s offer is now unconditional played a significant role in Namoi’s endorsement. The company, based in Queensland, is currently at the center of an international bidding war, with both LDC and Olam Agri vying for control to expand their presence in the Australian cotton market.
LDC’s bid has already received approval from Australia’s Foreign Investment Review Board and the local competition regulator, further solidifying its position. In May, Namoi had initially backed Olam Agri’s offer due to its higher value, but the landscape has shifted with LDC’s recent developments.
Olam Agri has not yet responded to requests for comment regarding this situation.