Join our daily newsletter At The Bell to receive exclusive market insights
- Namoi Cotton (ASX:NAM) shares are soaring after Louis Dreyfus Company Asia made a non-binding indicative offer to acquire the company
- The Namoi Board, after careful consideration, has approved advancing the NBIO
- The bid was lobbed at 51 cents a share, with an optional 1-cent dividend, bringing the cash consideration to 50 cents per share
- Namoi has the largest network of cotton gins in the country, and LDC aims to further strengthen the ginning business through the proposed acquisition
- NAM shares are up 33.8 per cent, trading at 47.5 cents at 2:04 pm AEDT
Namoi Cotton (ASX:NAM) shares are soaring after Louis Dreyfus Company Asia (LDC) made a non-binding indicative offer (NBIO) to acquire the company.
The bid was lobbed at 51 cents a share, with an optional 1-cent dividend, bringing the cash consideration to 50 cents per share.
Namoi has the largest network of cotton gins in the country, and LDC aims to further strengthen the ginning business through the proposed acquisition.
“Combining Namoi’s ginning business with LDC is designed to create a strengthened and sustainable business for our grower customers and staff,” NAM Executive Chairman Tim Watson said.
“This proposal builds on our existing relationship with LDC in our lint marketing and warehousing joint venture business for the past ten years.”
Board intentions
The Namoi Board, after careful consideration, has approved advancing the NBIO. This involves allowing LDC’s confirmatory due diligence, leading to a binding proposal and negotiations for a binding SIA.
If LDC aligns with NBIO terms and establishes an acceptable SIA, the Board plans to recommend shareholder approval, subject to superior proposals and expert confirmation of shareholder benefit.
Namoi has enlisted Blackpeak Capital as its financial advisor, and KWM is serving as the legal advisor to the company.
NAM shares were up 33.8 per cent, trading at 47.5 cents at 2:04 pm AEDT.
