Olam Agri raises offer for Namoi to A$0.70 per share

Namoi's biggest shareholder has backed Olam's offer.

Olam Agri has raised its takeover for Namoi Cotton Limited to A$0.70  per share from the previous A$0.66.

"The offer price applies regardless of whether or not Olam obtains a relevant interest in at least 90% of Namoi shares before the end of the offer period," the company said in a bourse filing.

The offer is subject to three conditions, one being that Olam will be able to obtain a relevant interest in at least 50.1% of Namoi shares.

Olam Agri's offer price is higher than the recent offer made by Louis Dreyfus Company Melbourne Holdings (LDC) of $0.67. 

Olam Agri added that its offer price also "represents a very attractive premium to the price at which Namoi Shares traded before offers were announced."

Samuel Terry Asset Management (STAM), who holds a 25.0% shareholding interest in Namoi, has backed Olam Agri's offer.

In a statement, STAM encouraged the Namoi board to engage with Olam's offer.

"STAM intends to accept the offer in respect of all the Namoi shares that it holds as of the date of acceptance," the company said.