Listed Australian vegetable grower and marketer Costa Group (Costa) has received a takeover offer from US private equity firm, Paine Schwartz Partners (PSP) valued at $1.6 billion.
According to an ASX statement, Paine Schwartz Partners made an unsolicited, non-binding indicative proposal on May 31 to acquire all shares in Costa for $3.50 each.
The proposal follows PSP acquiring a 13.78 per cent interest in Costa on October 25 last year at $2.60 per share and declaring its intention to increase its stake.
“PSP has indicated that they have received approval from the foreign investment review board to acquire up to 100 per cent of the shares in Costa, however, such approval may be required to be refreshed upon finalisation of any co-investors,” the company said in the statement.
The Costa board along with its financial and legal advisors have granted PSP an eight-week period of non-exclusive due diligence to enable the private equity firm to determine whether to put forth the offer. That potentially opens the way for any counter-bidder to explore the books.
The potential scheme implementation is expected to continue through July and there is “no certainty” the proposal will eventuate in a transaction of any kind, Costa said.
Founded in 1888, Costa Group is an Australian horticulture grower, packer and marketer specialising in fruits and vegetables such as berries, mushrooms, avocados, citrus and glasshouse tomatoes.
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