Home / Knowledge / News / Textiles / Namoi Cotton & Louis Dreyfus announce partnership
Namoi Cotton & Louis Dreyfus announce partnership
17
Jan '13
Namoi Cotton Co-operative Ltd and Louis Dreyfus Commodities Group jointly announced a proposal for the establishment of cotton marketing and commodities packing services joint venture ("Joint Venture") to be called Namoi Cotton Alliance.

Under the proposed Joint Venture, Namoi Cotton will hold a 51% controlling interest and Louis Dreyfus Commodities will hold a 49% minority interest. The Joint Venture will hold Namoi Cotton’s cotton marketing and commodities packing assets, for which Namoi Cotton will receive $30.38 million.

Namoi Cotton will also raise approximately $3.65 million from the issue of 14,327,384 Namoi Capital Listed Stock to Louis Dreyfus Commodities.

Importantly, the fundamentals of Namoi Cotton’s business will remain unchanged. It will continue to own and operate 100% of its ginning and cotton seed businesses, maintaining these critical supply chain activities for Growers.

Namoi Cotton Chairman, Stuart Boydell said: “This joint announcement represents the culmination of Namoi Cotton’s cornerstone investment strategic initiative which commenced in early 2012. This strategic initiative was embarked upon to deliver liquidity for business development opportunities, enable flexibility around our working capital requirements and strengthen our balance sheet”.

“The Namoi Cotton Board believes the Louis Dreyfus Commodities’ offer represents compelling value and is in the best interests of Namoi Cotton Grower Members and Namoi Cotton. The Board is unanimously recommending that Namoi Cotton Grower Members vote in favour of the Proposed Resolution in the special postal ballot.”

Namoi Cotton Chief Executive Officer, Jeremy Callachor said: “Namoi Cotton Alliance will draw on the extensive industry experience of Namoi Cotton, in conjunction with the financial capacity, global marketing expertise and risk management skills of Louis Dreyfus Commodities. The Joint Venture will create a strong cotton marketing business whilst retaining important Grower Member co-operative involvement. The capital raised will strengthen Namoi Cotton’s balance sheet.”

Louis Dreyfus Commodities Australian CEO Robert Green said: “Namoi Cotton Alliance will undoubtedly support Australian cotton growers in international markets long-term, while allowing the global Louis Dreyfus Commodities business greater exposure to additional Australian cotton volumes to meet the needs of its international customers.”

“This investment by Louis Dreyfus Commodities in established infrastructure and logistics operations in Australia illustrates the group’s desire to build stronger engagement with Australian growers, as the basis for our immediate and longer term growth goals,” he said.

Namoi Cotton will seek the approval of its Grower Members by special postal ballot (75% majority) for the establishment of the Joint Venture. It is anticipated this ballot will be completed at or around the end of February 2013.

Must ReadView All

Textiles | On 24th Jan 2017

Textile industry demands relaxation of laws from Budget

The upcoming Union Budget 2017-18 should focus on relaxing certain...

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search