Australian food company Goodman Fielder on Monday said it had received a A$1.27 billion ($1.18 billion) takeover offer proposal from Singapore's Wilmar International Ltd, 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 more than 28 percent of their value in the past year, against a 8.4 percent gain in the broader market.

Wilmar, which already owns 10.1 percent of the company, proposed the deal together with a Hong Kong investment management company First Pacific Company Ltd.

Wilmar said Goodman Fielder would be privatised 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.