Namoi Cotton CEO Bob Bell has termed the QUEENSLAND Cotton's $109 million bid for its NSW counterpart as 'dead and buried'.
He informed that Namoi liquidated same assets put up for sale last September, as it did not match its requirements.
He stated that gins worked below 50 percent capacity over the last four to five years and would retard the company's overall progress.
Meanwhile, he accepted the fact that Namoi owned gins operated in the same geographical area as the Twynam gins and said shareholders would be informed on the buyback offer this week.
In another deal worth $25 million for unlisted Twynam Agricultural Group's ginning assets, including three mills in NSW and exclusive rights to Twynam's upland cotton crop over the next five to six years, Queensland Cotton has thus stamped its increased its presence in the area, last week.
Queensland Cotton picks 30 percent of total Australian cotton ginning capacity with 1.1 million bales output capacity.
In the current season NSW industry is expected to come a cropper, significantly higher output over the previous years.
However, Australia's cotton output is estimated at 2.5 million bales, much below the long-term average of 3 million bales, sources said.
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