(Adds detail, further comment from Select Harvests statement)
Oct 9 (Reuters) - Australian almond producer Select Harvests Ltd SHV.AX said on Monday it rejected an A$430.6 million ($334.2 million) "undervalued" takeover proposal from United Arab Emirates sovereign wealth fund Mubadala Investment Company PJSC.
The company said the Mubadala Investment Company offer valued the company at A$5.85 per share and was also "highly conditional". The offer was a 39 percent premium to its previous close on Wednesday, ahead of a trading halt.
Select Harvest board said the offer was "significantly undervalued" - without offering its own valuation - and also cited regulatory risks, transaction costs and "potentially disruptive" due diligence as other reasons for rejecting the offer.
Shares of the Australian company jumped as much as 27 percent to A$5.33 after the announcement.
Mubadala was not immediately available for comment on Select Harvests' rejection of its offer.
One of the key conditions of the deal also included not paying any further dividends, Select Harvests said.
The company said in a statement that "the requirements to maintain Select Harvests in stasis with no distributions to shareholders or changes in capital structure over an extended period" was one of the reasons to decline the offer.
Select Harvests did not rule out the possibility of a revised offer by Mubadala.
In a separate announcement, Select Harvests said it would raise A$65 million with a A$45 million share placement and a A$20 million share purchase.
Proceeds of the placement would be used to reduce debt, the company said.
($1 = 1.2877 Australian dollars)