LOUIS Dreyfus Company is now almost assured of securing ownership of Namoi Cotton after winning support from its independent directors and largest shareholder.

The offer for Namoi from the Australian arm of the global LDC agribusiness now stands at 77 cents per share, up 9c jump from its previous offer, and 2c above Olam Agri’s highest offer.

After shifting support to counterbidder Olam Agri on September 20, Namoi’s independent directors on Tuesday recommended shareholders accept LDC’s revised offer.

Namoi’s largest shareholder, Samuel Terry Asset Management has also announced its intention to accept the offer, increasing LDC’s stake in Australia’s largest cotton ginner to 47.66 percent.

In a statement lodged with the ASX, Namoi’s executive chairman, Tim Watson, said he had sold all his shares into the LDC offer, as had all of Namoi’s other independent directors Ian Wilton, Robert Green and Juanita Hamparsum.

Jointly, and as of April 16, they own approximately 4.89 million shares in Namoi Cotton out of a total 205.3M shares issued.

Olam Agri said in a statement that it would not extend its takeover offer for Namoi, which is due to expire on October 8.

Queensland Cotton managing director and country head for Olam Agri Australia Ashish Govil said the company was still committed to investing in Australian agriculture.

“We hope that our interest in acquiring Namoi Cotton is seen as a testament to Olam Agri’s willingness to invest in the Australian agriculture industry,” Mr Govil said.

“The proposed acquisition led to a robust and competitive process for Namoi Cotton, allowing the company to realise a full and fair valuation for the benefit of all shareholders.

“We thank the Namoi Cotton board, shareholders and all stakeholders who have been supportive of Olam Agri throughout this period.”

Olam Agri has also terminated the off-market share purchase agreement with STAM to unconditionally acquire a 9.99pc stake in Namoi.

This means Olam Agri now owns an 8.24pc voting interest in Namoi.

LDC’s offer is scheduled to close at 7pm on October 9.

It is unconditional and has the support of the Foreign Investment Review Board and the ACCC.

Source: Namoi Cotton, Olam Agri, LDC