Olam Agri Holdings Limited's off-market takeover offer for Namoi

Olam Agri Holdings Limited (ASX: $OLAM) has announced its intention to make an off-market takeover offer to acquire all fully paid ordinary shares in Namoi Cotton Limited (Namoi) at $0.66 cash per share, subject to obtaining a relevant interest in at least 50.1% of the Namoi Shares. Olam proposes to increase the value of its offer to $0.70 cash per share if it obtains a relevant interest in at least 90% of the Namoi Shares before the end of the offer period.

Executive commentary on the off-market takeover offer

Olam Co-Founder and Group CEO, Mr Sunny Verghese, stated, 'Olam has successfully completed its confirmatory due diligence and is pleased to formalize its intention to acquire Namoi's shares. We have operated as a cotton grower, ginner, and merchant in Australia since 2007 through our wholly owned subsidiary 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. Olam has significant global cotton industry expertise, positioning us perfectly to support Namoi and foster its future growth.'

Summary of the off-market takeover offer and outlook

Olam Agri Holdings Limited (ASX: $OLAM) has proposed an off-market takeover offer to acquire all fully paid ordinary shares in Namoi Cotton Limited at $0.66 cash per share, with a potential increase to $0.70 cash per share if a relevant interest in at least 90% of the Namoi Shares is obtained. The Offer is 100% cash and is conditional on Olam obtaining a relevant interest in at least 50.1% of the Namoi Shares, receipt of regulatory approvals from FIRB and ACCC, and no prescribed occurrences occurring in relation to Namoi before the end of the offer period. Olam's extensive experience in the Australian cotton industry and its global expertise position it to support Namoi and foster its future growth. The Offer represents a very attractive premium to the price at which Namoi Shares traded before the announcement of the Offer, providing potential benefits to Namoi shareholders.