Transactions by NAMOI COTTON CO-OPERATIVE (NAM) in the last 6 months

Louis Dreyfus Commodities Australia Pty. Ltd. agreed to acquire 49% stake in the cotton marketing and commodities packing assets of Namoi Cotton Co-operative Ltd (ASX:NAM) for AUD 30.4 million in cash on January 16, 2013. In a related transaction, Namoi Cotton will also raise approximately AUD 3.65 million from the issue of 14.3 million Namoi Capital listed stock to Louis Dreyfus Commodities. Pursuant to the transaction, cotton marketing and commodities packing assets ... will be called as Namoi Cotton Alliance. Under the terms of the transaction, Namoi Cotton Co-operative and Louis Dreyfus Commodities will establish joint venture in which Namoi Cotton will hold a 51% interest and Louis Dreyfus Commodities will hold a 49% interest. The transaction is subject to conditions including approval from the shareholders of Namoi Cotton, relevant regulatory approvals, including competition review in Australia, the joint venture securing financing facilities in place, Namoi Cotton’s and Louis Dreyfus Commodities’ financiers giving their respective consents. The Namoi Cotton Board believes the transaction 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 favor of the resolution in the special postal ballot. Transaction is expected to close after March 8, 2013, depending on completion or waiver of conditions. Namoi Cotton will use the transaction proceeds of AUD 20.9 million to reduce term debt, AUD 10.2 million as capital injection for the joint venture and AUD 2.8 million in meeting post completion transaction costs. As of March 14, 2013, Australian Competition and Consumer Commission approved the deal. The deal remains subject to certain conditions including financier approvals and deal is expected to complete by March 31, 2013. David McCarthy of Edelman and Bruce Ruddy of Rowland acted as PR advisors for Louis Dreyfus and Namoi Cotton respectively. m3property (QLD) Pty Limited acted as valuer in the transaction. DLA Piper Australia and King & Wood Mallesons acted as legal advisors, Leadenhall Corporate Advisory acted as independent expert for a fee of AUD 38,500 and ANZ Corporate Advisory acted as financial advisor to Namoi Cotton.
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