Buyer raids Costa Group;The $1bn Australian listed fruit and vegetable producer Costa Group was subject to a raid on its share register by its former private equity owner Paine Schwartz Partners on Tuesday night, buying a stake of up to 15 per cent worth about $157m.
Shares were snapped up at $2.60, a 16.6 per cent discount to Costa’s closing pricing on Tuesday of $2.23 through investment bank Citi.
It is understood that the move is part of a long term investment by New York-based Paine, rather than a precursor to a buyout.
The company previously called Paine & Partners said it had no current intention to bid for Costa, but was keen to gain a board seat, subject to Foreign Investment Review Board approval.
Investors on Tuesday were told a buyer wanted to acquire a total aggregate interest, comprising a direct and or indirect interest, in Costa Group of up to 15 per cent.A term sheet said a buyer intends to secure up to 46.6 million shares, representing 9.99 per cent, and enter into a forward contract with Citi in respect to 13.4 million Costa shares. This represented a further 2.89 per cent of issued capital.It already has a 2.38 per cent economic interest in the company and secured 23 million shares, equivilent to 4.95 per cent, from an existing investor earlier.
Major shareholders in Costa until now have been Perpetual, with a 13.6 per cent stake, State Street, Vanguard and Pendal.Paine and Partners owned Costa with family founders before Costa was listed in 2015 at $2.25 a share, equating to a $717m market value.
https://www.theaustralian.com.au/business/dataroom/buyer-raids-costa-group-citi-on-the-ticket-buyer-raids-costa-group-citi-on-the-ticket/news-story/6a70c8d6ab843451a2a73f2c9ba6bcfa
