BENGALURU - Singapore’s Olam Agri on May 8 increased its off-market takeover offer for Namoi Cotton to A$144.9 million (S$129.2 million), a day after rival bidder Louis Dreyfus (LDC) valued the Australian firm at A$138.6 million.

Shares of the Australian cotton ginning company rose as much as 5 per cent to 77 Australian cents, their highest since September 1999, extending their gains to a third session.

The rally came after Olam Agri sweetened its offer price to 70 Australian cents per share from 66 Australian cents apiece, above LDC’s latest bid of 67 Australian cents per share.

Olam Agri said its revised offer was applicable regardless of it obtaining at least 90 per cent stake in Namoi, a condition set in the offer made last week.

Both the revised offers are subject to the bidders acquiring a 50.1 per cent stake in Namoi.

Dutch global commodity merchant LDC already owns around 17 per cent of Namoi and is vying for full control of Australia’s largest cotton producer. Olam already owns its rival Queensland Cotton.

LDC and Olam have been bidding back and forth to gain control of Namoi since January 2024.

Acquiring ownership of Namoi would strengthen the buyer’s foothold in Australia, providing it access to Namoi’s network of ginning services and storage locations in New South Wales and Queensland.

Both LDC and Namoi did not immediately respond to Reuters’ requests for comment on Olam’s sweetened offer. REUTERS