The largest shareholder of China Minzhong Food Corporation has tabled a general offer of $1.12 per share for the Singapore-listed China vegetable seller.
Indonesian food giant PT Indofood Sukses Makmur, controlled by the powerful Salim family, made the offer after buying 3.9 per cent of China Minzhong in so-called married trades. That took the firm's stake to 33.49 per cent.
With Indofood's stake now above 30 per cent, it must make a general offer for China Minzhong under Singapore's takeover code.
Over the past week, China Minzhong has been involved in a war of words with United States short-seller Glaucus Research Group. The firm's shares have been halted since around 11am on Aug 26, after Glaucus' allegations of fraud sent them lower by 48 per cent to 53 cents.
Indofood's offer is higher than China Minzhong's last closing price before the attack, of $1.015.
Glaucus had claimed that China Minzhong fabricated sales and other figures for the years leading up to its 2010 listing, doctored its capital expenditures and boasted growth that was too good to be true.
China Minzhong has denied the allegations and on Sunday evening gave a detailed rebuttal to each of the points made by Glaucus.
The trading halt on China Minzhong's shares will be lifted at 3.30pm Singapore time on Monday.