Australia's Costa Group backs Paine Schwartz's $963 mln buyout offer (updated)

Costa group

21/09/2023 23:58

(Adds details on the offer in paragraphs 2 to 4)
       Sept 22 (Reuters) - Costa Group Holdings  CGC.AX  said
on Friday it has entered an agreement to be bought out by a
consortium led by private equity firm Paine Schwartz Partners in
a deal valuing the horticulture company at A$1.50 billion
($962.6 million).
        Under the proposal, Costa's shareholders would receive
A$3.20 apiece for the remaining 85.16% stake that Paine Schwartz
does not already own.
  
        The private equity firm had initially offered to buy
Costa, Australia's leading grower, packer and marketer of fresh
fruit and vegetables, at A$3.50 a share 
    in July
    , but trimmed the offer earlier this week, deeming it the
best and final price.
  
        Costa's board unanimously recommended that shareholders
vote in favour of the deal.
  

 ($1 = 1.5584 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Shounak
Dasgupta and Pooja Desai)
 ((Himanshi.Akhand@thomsonreuters.com))