The board of Australian grain trader GraIncorp has backed an improved takeover bid from US agri-giant Archer Daniels Midland, which values the company at around A$2.6bn (US$2.7bn).

The offer, for a total value of A$13.20 per share, would see GrainCorp shareholders receive A$12.20 in cash plus dividends totalling A$1, GrainCorp said in a regulatory filing. The offer price represents a 49% premium on the closing share price of A$8.85 on 18 October last year, the last trading day prior to ADM’s initial takeover approach.

The GrainCorp board said they would back the offer as long as certain conditions are met, including the proviso that a higher proposal is not made by a competing bidder. The companies have entered into an Implementation Deed, allowing ADM to undertake a “limited scope” of due diligence.

Last October, ADM initially proposed a takeover of GrainCorp that valued the company at $13.55 per share. This was rejected by the group as undervaluing GrainCorp’s future potential worth.