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Olam Int raises its bid for Queensland Cotton
28 May '07
3 min read
“Under the Olam offer there is potential for shareholders to receive a second tier price of $5.90 per share, which is 59 cents (or 11.1%) above the takeover offer by Louis Dreyfus, if Olam obtains acceptances for 75.1% or more of Queensland Cotton shares.
“The reduced acceptance threshold of 75.1% for the second tier price provides an increased likelihood that shareholders may secure $5.90 per share, irrespective of the fact that Louis Dreyfus may not accept the Olam offer,” said Mr Reynolds.
Agreement with Olam:
Queensland Cotton has entered into an agreement with Olam in respect of its increased offer. A copy of the agreement accompanies this announcement.
Shareholders should reject the Louis Dreyfus Offer:
In light of this development, shareholders should REJECT AND NOT ACCEPT the takeover offer from Louis Dreyfus Commodities BV.
Louis Dreyfus may lodge and despatch its bidder's statement shortly. Shareholders should ignore any correspondence from Louis Dreyfus.
Shareholders who accept the Louis Dreyfus offer will be unable to withdraw their acceptance and will receive only $5.31 for each of their shares unless Louis Dreyfus increases its offer. Ownership of accepted shares will pass to Louis Dreyfus for $5.31 per share unless Louis Dreyfus increases its offer. This price is materially lower than the price of the increased Olam offer.
Recommendation of the Olam offer triggers a liability for Queensland Cotton to pay to Louis Dreyfus a break fee of $1.50 million. This break fee will not be paid to Louis Dreyfus until control of Queensland Cotton passes to Olam or the Louis Dreyfus offer closes without Louis Dreyfus achieving an ownership position of 50% or greater.
“The reduced acceptance threshold of 75.1% for the second tier price provides an increased likelihood that shareholders may secure $5.90 per share, irrespective of the fact that Louis Dreyfus may not accept the Olam offer,” said Mr Reynolds.
Agreement with Olam:
Queensland Cotton has entered into an agreement with Olam in respect of its increased offer. A copy of the agreement accompanies this announcement.
Shareholders should reject the Louis Dreyfus Offer:
In light of this development, shareholders should REJECT AND NOT ACCEPT the takeover offer from Louis Dreyfus Commodities BV.
Louis Dreyfus may lodge and despatch its bidder's statement shortly. Shareholders should ignore any correspondence from Louis Dreyfus.
Shareholders who accept the Louis Dreyfus offer will be unable to withdraw their acceptance and will receive only $5.31 for each of their shares unless Louis Dreyfus increases its offer. Ownership of accepted shares will pass to Louis Dreyfus for $5.31 per share unless Louis Dreyfus increases its offer. This price is materially lower than the price of the increased Olam offer.
Recommendation of the Olam offer triggers a liability for Queensland Cotton to pay to Louis Dreyfus a break fee of $1.50 million. This break fee will not be paid to Louis Dreyfus until control of Queensland Cotton passes to Olam or the Louis Dreyfus offer closes without Louis Dreyfus achieving an ownership position of 50% or greater.
Queensland Cotton Holdings Limited
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