Costa Group’s share price has risen following news about a takeover bid by a US firm.Credit:Edwina Pickles
Paine Schwartz is a former majority owner in Costa and helped it float on the ASX in 2015 with a 50 per cent stake in the company. It currently owns a 13.8 per cent stake,but indicated in late October that it planned to increase this to15 per cent and gain a seat on Costa’s board.
Costa’s board of directors granted Paine Schwartz two months to conduct non-exclusive due diligence,which began on June 6,to help the equity firm decide whether to make a binding proposal.
Loading
New York-based Paine Schwartz has already received approval from the Foreign Investment Review Board to acquire all Costa’s shares,but Costa said in its statement that “such approval may be required to be refreshed upon finalisation of any co-investors”.
The horticulture giant,which also grows mushrooms,tomatoes,berries and citrus,indicated that any agreement would not be made in the coming days despite media speculation.
“Further due diligence and negotiations on a potential scheme implementation agreement are expected to continue through July,” the company said.
“There is no certainty that the indicative proposal will result in a binding offer or that any transaction will eventuate.”