WELLINGTON (Reuters) - Australian food company Goodman Fielder GFF.AX on Monday said it had received a A$1.27 billion ($1.18 billion) takeover offer proposal from Singapore's Wilmar International Limited, but said the offer undervalued the company.
In a statement, Goodman Fielder said the non-binding, "highly conditional" offer received over the weekend had proposed a price of A$0.65 per share.
"The Board believes that the current proposal materially undervalues Goodman Fielder and is opportunistic," Goodman Fielder said in a statement. "The board has advised Wilmar and First Pacific accordingly."
Shares in Goodman Fielder closed at A$0.55 last Thursday. They have lost over 28 percent of their value in the past year, against a 8.4 percent gain in the broader market.
Wilmar said Goodman Fielder would be privatized and its shares would be de-listed from the ASX and NZX if the deal proceeds.
Goodman Fielder, which has Credit Suisse as financial adviser, said the company would continue to assess other opportunities to maximize shareholder value.
Reporting by Naomi Tajitsu and Maggie Lu Yueyang; Editing by Diane Craft and Sandra Maler