Namoi Cotton is Australia’s biggest ginner, with Merah North near Wee Waa, NSW, one of its sites. Photo: Namoi Cotton

QUEENSLAND Cotton parent Olam Agri has increased its off-market takeover offer for Namoi Cotton to 66 cents per share, 6c above the figure Louis Dreyfus Company announced on Monday.

In a statement released today, Olam Agri said this offer to acquire all fully paid ordinary shares in Namoi Cotton was subject to obtaining a relevant interest in at least 50.1 percent of Namoi shares.

Olam proposes to increase the value of its offer to $70c cash per Namoi share if it obtains a relevant interest in at least 90pc of the Namoi shares.

“Olam has successfully completed its confirmatory due diligence and is pleased to formalise its intention to acquire Namoi’s shares,” Olam co-founder and group CEO Sunny Verghese said.

Olam Agri is based in Singapore, but has operated as a cotton grower, ginner and merchant in Australia since 2007 through its ownership of Queensland Cotton.

“This long experience has allowed us unique insights into the Australian cotton industry, where we have built strong relationships across the supply chain,” Mr Verghese said.

“This has provided us with a deep understanding of the needs and challenges associated with producing and merchandising high-quality cotton.”

“Olam has significant global cotton industry expertise, including our operations in Brazil where we are also a grower, and Africa where we support our network of 340,000 farmers to improve practices and maximise incomes.

“This international experience and deep local knowledge, coupled with our credentials as one of the
world’s largest private cotton ginners, positions us perfectly to support Namoi and foster its future growth.”

LDC on Monday posted its revised offer for Namoi Cotton, following its first move on the ASX-listed entity in November last year.

LDC currently owns 17pc of Namoi Cotton shares and operates two joint ventures with Namoi Cotton: Namoi Cotton Alliance and Namoi Cotton Marketing Alliance.