Namoi Cotton lodges first supplementary target's statement in response to Olam's conditional takeover offer

Namoi Cotton Limited (ASX:NAM) has lodged the first supplementary target's statement in response to the off-market takeover bid by Olam Agri Australia Pty Ltd (Olam) for all of the fully paid ordinary shares in Namoi. The first supplementary target's statement includes a supplementary Independent Expert's disclosure prepared by BDO Corporate Finance Ltd in relation to the Olam Offer. Namoi shareholders are advised to carefully consider the information provided in the supplementary target's statement before making any decisions regarding the Olam Offer.

Independent expert's opinion on the Olam Offer

The Independent Directors of Namoi note that several recent developments have occurred which have resulted in the Independent Directors reconsidering their recommendation in relation to the Olam Offer. The LDC Takeover Offer is now unconditional, and the Independent Directors unanimously recommend that Namoi Shareholders REJECT the Olam Offer and TAKE NO ACTION in relation to all documents sent by Olam. The Independent Expert, BDO Corporate Finance Ltd, has formed the view that the Olam Offer is neither fair nor reasonable to Namoi Shareholders as at the date of the supplementary target's statement.

Outlook and shareholder guidance

The first supplementary target's statement advises Namoi shareholders to reject the conditional Olam Offer and take no action. The Independent Directors consider the Olam Offer, in its current form, to be an inferior proposal to the LDC Takeover Offer, which is now unconditional. Shareholders are encouraged to carefully consider their options and consult with their professional advisers before making any decisions. The Independent Expert's opinion, included in the supplementary target's statement, concludes that the Olam Offer is neither fair nor reasonable to Namoi Shareholders as at the date of the supplementary target's statement. Namoi Cotton Limited will continue to provide updates on any further material developments in relation to the Olam Offer or the LDC Takeover Offer during the Offer Period or the LDC Takeover Offer Period.