A seesawing week of offer and counter offer for Namoi Cotton has seen another twist this morning with Singaporean agribusiness Olam upgrading its offer to an across the board 70 cents a share.
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This has buoyed the stock market, with shares on the Australian Stock Exchange rising 4.1pc in the hours after the announcement to 76c/share.
This move came after earlier in the week Louis Dreyfus (LDC ) had issued its own updated bid of 67c, representing an increase for the shares it does not own in Namoi of just seven cents to 67 cents a share.
Share price moves were far more muted with the LDC move, rising just 1.3pc after its announcement.
The previous Olam offer also had a headline number of 70c a share but there have been some important changes to the conditions of the bid in this revised offer.
The first bid was conditional on Olam gaining 90pc of the shares which was effectively ruled out when LDC, which already has a 17pc stake in Namoi, ruled out accepting the Olam offer.
Under the previous Olam offer it would pay 66c if it was able to purchase more than 50.1pc but less than 90pc of the shares, now it will be 70c should it get a controlling stake in the business.
It alters the dynamic of the acquisition battle as previously Louis Dreyfus officials were confident that due to its existing 17 per cent stake in Namoi, it would be able to get the deal done in spite of the headline offer being less than Olam.
LDC said in a statement that it's offer this week represented a significant premium to Namoi's undisturbed historical market prices, being 89pc above the November 27, 2023 share price of 35.5c and a 12pc increase on LDC's initial offer.
With the two multinationals circling, the Namoi board will have a decision to make as to which offer they recommend to shareholders.
The first LDC offer won the recommendation of the board, however they are yet to comment publicly since the Olam bid was entered.
In a statement to the Australian Stock Exchange Samuel Terry Asset Management, (STAM), which holds a 24.2pc share in Namoi backed the first Olam bid.
Olam is involved in the Aussie cotton sector through its ownership of cotton marketing business Queensland Cotton.