(Bloomberg) -- Olam Agri Holdings Ltd. sweetened its offer for Australia’s Namoi Cotton Ltd., topping a proposal from rival Louis Dreyfus Co. and heating up a bidding war between two top agricultural commodities traders.

Olam Agri offered A$0.66 cash per share, valuing the producer at A$135.5 million ($88.4 million), subject to gaining support from more than half the company’s shareholders. If Olam Agri secures support from at least 90% of shareholders, it will increase the offer to A$0.70, according to a statement Thursday. That would value the company at A$143.7 million. 

Namoi’s shares surged as much as 14% to A$0.73 in Sydney on Thursday, the highest in almost two decades. The off-market takeover offer from Olam represents a premium of 97% on the closing price of A$0.355 on Nov. 27, the last trading day before LDC’s initial approach to the Namoi board.

Both companies already have a foothold in Australia’s cotton industry, which is the world’s sixth biggest. Olam acquired Queensland Cotton in 2007, and owns a number of ginning facilities in New South Wales and Queensland. Meanwhile, LDC acquired Dunavant’s Australian cotton business in 2010, and owns three processing plants across New South Wales and Queensland.

Rotterdam-based LDC, which holds a 17% stake in Namoi, in January announced an agreed deal to buy the shares it didn’t already own for A$0.50 per share in cash, adjusted for a dividend of 1 Australian cent to be paid after the takeover. 

That offer was bested by Olam Agri, which in late March offered A$0.59, including a special dividend of 1 cent per share. On Monday, LDC topped that, agreeing to pay A$0.60 per share, exclusive of the 1 Australian cent dividend, for the shares it didn’t already own.

(Updates with additional details throughout.)

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