Australia’s largest horticultural producer Costa Group has confirmed it is acquired a takeover provide from a New York personal fairness agency, which may reap shareholders a bumper harvest.
The Melbourne-based firm disclosed the proposal, which values the goal’s issued fairness at greater than $1.6 billion, in an announcement to the inventory change on Tuesday.
The unsolicited, non-binding provide from Paine Schwartz Partners to accumulate all of the shares in Costa it doesn’t already personal was acquired on May 31, the board stated.
Paine Schwartz Partners acquired 14 per cent of Costa shares in October earlier than flagging a possible strategy of between $3.20 and $3.30 per share.
The eventual provide, re-confirmed on Tuesday, would give shareholders $3.50 per share, a 24 per cent premium on the closing value of Costa inventory on Monday.
Shareholders may also be entitled to any interim dividend declared for the six-month interval to July 2 this yr of as much as 4c per share.
Paine Schwartz Partners have indicated the Foreign Investment Review Board has granted it permission to accumulate everything of Costa’s shares, however approval might must be refreshed if any co-investors had been introduced in.
Costa watered down hypothesis {that a} deal was doubtless within the coming days, saying additional due diligence and negotiations are anticipated to proceed all through July.
Costa shares had shot up 10.4 per cent to $3.29 simply earlier than 11.30am AEST.
Company co-founder Frank Costa, a descendent of Italian migrant farmers who helped save the Geelong Cats from monetary oblivion, died in 2021 on the age of 83.
Paine Schwartz Partners have been contacted for remark.
Source: www.perthnow.com.au
