Costa accepts takeover bid
Australian fresh produce giant Costa Group has agreed to a US$960m purchasing offer from a Paine Schwartz Partners-led consortium including Driscoll’s. The decision to enter into a Scheme Implementation Agreement was announced on 22 September.
The PSP-led consortium is comprised of entities controlled by PSP, Driscoll’s and British Columbia Investment Management Corporation. Entities affiliated with PSP and Driscoll’s hold in aggregate, approximately 19.62 per cent of the Costa shares currently on issue.
The agreement will see the consortium acquire the remaining Costa shares at A$3.20 a share, valuing Costa’s equity at approximately A$1.496bn. This is in line with an updated offer Costa received earlier in the month that was reduced from PSP’s original offer, tabled in July.
Costa said the acquisition is expected to occur in the first quarter of 2024, subject to shareholder approval being obtained by the requisite majorities and the other conditions of the scheme being satisfied.
