Significant shareholder and potential buyer Paine Schwartz Partners submits a revised acquisition proposal

Leading Australian fresh produce grower-packer-marketer Costa Group has announced an update to the acquisition proposal received from Paine Schwartz Partners (PSP).

The investment firm – which owns a 13.78 per cent share in the publicly listed Costa Group – has submitted a revised non-binding indicative offer. When the indicative proposal was first announced in July it included an offer of $3.50 per share.

“On 16 September 2023, PSP put forward a revised non-binding offer of $3.20 per share, reduced for any permitted dividend of up to $0.04 (if declared). PSP has also indicated that this offer is the best and final price at which the PSP-led consortium can deliver the proposed transaction,” Costa said in a release.

The update came in the wake of Costa’s half-year results which detailed challenges in a number of key segments. Although Costa said it expects its full year earnings to surpass its 2022 efforts, poor citrus and grape seasons took their toll. 

“The Costa Board, together with its financial and legal advisers, is considering the revised non-binding offer and is continuing to engage with PSP regarding the terms and conditions of the offer to enable the Costa Board to comprehensively assess whether the revised non-binding offer is in the best interest of shareholders,” said Costa. 

“There continues to be no certainty that a binding offer will be received or that any transaction will eventuate. Costa shareholders do not need to take any action at this time.”