By Stuart Condie
SYDNEY–Fruit and vegetable grower Costa Group said it received an unsolicited takeover proposal from U.S. private-equity firm Paine Schwartz Partners valuing the Australian company at 1.63 billion Australian dollars ($1.08 billion).
Costa on Tuesday said Paine Schwartz lodged the indicative all-cash proposal of A$3.50 a share on May 31. Costa granted Paine Schwartz eight weeks of due diligence from June 6, and the U.S. firm reconfirmed its proposal on Tuesday.
Paine Schwartz acquired a 14% interest in Costa in October 2022 at A$2.60 a share. In April, the companies then discussed a potential approach worth between A$3.20 and A$3.30 a share, Costa said.
Paine Schwartz indicated it already has approval from Australia’s foreign investment regulator for a full takeover, Costa said.
Costa shares last traded at A$2.96.
Write to Stuart Condie at [email protected]
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