Costa Group backs $963 mln buyout bid; Bell Potter ups PT

Costa group

25/09/2023 03:37

** Analysts at Bell Potter raise PT on Australia's Costa
Group  CGC.AX  to A$3.20/share from A$3.10/share; keep rating at
"hold"
    ** The Australian horticulture company on Friday agreed to
be bought out by a consortium led by U.S. private-equity firm
Paine Schwartz Partners, in a deal valuing the firm at A$1.50
billion ($963.60 million)
    ** CGC shares currently up 0.7%
    ** Brokerage says the deal's 43% premium compared to co's
share price post initial offer in October removes the risk of a
potential 'overhang' had the proposal been rejected
    ** Four of 10 analysts rate the stock "buy" or higher and
six "hold"; their median PT is A$3.10 – LSEG data
    
($1 = 1.5567 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))