Rob Verdonck 

(Bloomberg) -- Olam Group Ltd. has entered the race for Namoi Cotton Ltd. as two of the world’s biggest agricultural traders jostle to buy Australia’s largest processor of the commodity. 

A unit of Olam Group offered 59 Australian cents a share, including a special dividend of 1 cent a share, valuing the cotton processor at about A$122 million ($81 million), according to a statement. The non-binding bid is 16% more than a rival offer from Louis Dreyfus Co. in January, it said.

Olam Agri Holdings Ltd. — the unit making the offer — also made an alternative off-market takeover bid of 57 Australian cents a share, Olam said. Combining Namoi with its Queensland Cotton unit would “unlock new opportunities for the two businesses and for Australian cotton growers,” it said.

Namoi shares jumped as much as 21% to the highest level since 2017.

The board of Namoi is considering the Olam offer in light of its exclusivity obligations with Louis Dreyfus, the company said in a separate statement. Louis Dreyfus already owns 17% of the Australian processor, according to data compiled by Bloomberg.

--With assistance from Megan Durisin.