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- Namoi Cotton (ASX:NAM) enters into a scheme implementation agreement with Louis Dreyfus Company Asia to acquire the remaining 83 per cent of issued shares in Namoi that it does not currently own
- Namoi shareholders are positioned to receive a cash consideration of 51 cents per share
- The cash consideration represents a 44 per cent premium over the closing share price of 35 cents per share and a 37 per cent premium over the three-month VWAP of 37 cents per share
- If the scheme’s implementation extends beyond August 31, 2024, Namoi can declare an additional 1 cent per share dividend to its shareholders
- NAM shares last traded at 49 cents
Namoi Cotton (ASX:NAM) has entered into a scheme implementation agreement (SIA) with Louis Dreyfus Company Asia (LDC) to acquire the remaining 83 per cent of issued shares in Namoi that it does not currently own
Namoi Cotton is a prominent player in the Australian cotton processing and supply chain industry and showcases an annual ginning capacity of 1.6 million bales.
As part of the scheme, Namoi shareholders are positioned to receive a cash consideration of 51 cents per share. This sum will encompass a one-cent per share dividend, scheduled for distribution after April 1, 2024.
“Namoi’s network of cotton gins and the business relationships it has built over the past 62 years are complementary to LDC’s activities, and we strongly believe the move announced today will add value to both entities,” LDC Head of Cotton Joe Nicosia said.
The cash consideration represents a 44 per cent premium over the closing share price of 35 cents per share and a 37 per cent premium over the three-month volume-weighted-average price of 37 cents per share.
“Combining Namoi’s ginning business with LDC is designed to create a strengthened and sustainable business for our grower customers and staff and provide Namoi shareholders the opportunity to realise value for their shares at an attractive premium to the share price prior to the announcement of LDC’s indicative proposal,” NAM Executive Chairman Tim Watson said.
If the scheme’s implementation extends beyond August 31, 2024, Namoi can declare an additional 1 cent per share dividend to its shareholders.
NAM shares last traded at 49 cents.
