BENGALURU – Dutch global commodity merchant Louis Dreyfus Company (LDC) has raised the ante on an international bidding war for Australia’s Namoi Cotton by sweetening its offer price marginally above that of rival suitor Singapore’s Olam Agri.

Namoi’s second-biggest shareholder with around 17 per cent control, LDC has proposed to buy the rest of the Australian cotton producer for 67 Australian cents per share, valuing the company at A$138.6 million (S$124.1 million), Namoi said on May 7.

That is just a hair above Olam Agri’s latest 66 Australian cents per-share offer, which values Namoi at A$136.6 million.

Shares of the Australian cotton ginning company rose as much as 2.8 per cent to 74 Australian cents on May 7, their highest since November 1999.

Namoi is Australia’s largest cotton producer, while Olam Agri already owns rival Queensland Cotton. Both LDC and Olam Agri have been bidding back and forth to gain control of Namoi since January.

Gaining full control of Namoi would help the acquirer expand its presence in Australia, giving it access to Namoi’s ginning network and warehouses in New South Wales and Queensland.

Both the offers are subject to the bidders acquiring a 50.1 per cent stake in Namoi. LDC has already rejected Olam Agri’s latest offer, while Namoi’s top shareholder Samuel Terry Asset Management (STAM) has so far backed both the offers.

Olam Agri, a unit of Singapore-listed Olam Group, did not immediately respond to a Reuters request for comment, while STAM declined to comment.

Just minutes after the new takeover offer was announced, an exchange filing issued on behalf of LDC showed the Dutch firm had raised its stake in Namoi to 16.99 per cent from 16.4 per cent.

LDC had made an offer of 60 Australian cents per share in late April, which was outbid by Olam Agri.

The Singapore-based firm had said last week its latest 66 Australian cents per-share offer would be hiked to 70 Australian cents if it obtained at least a 90 per cent stake in Namoi. REUTERS