News: CGC UPDATE 1-Australia's Costa Group gets $935 mln bid from PE firm Paine Schwartz Partners

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July 4 (Reuters) - Australia's Costa Group Holdings (CGC) said on Tuesday it had received a A$1.40 billion ($934.50 million) takeover proposal from U.S. private equity firm Paine Schwartz Partners LLC (PSP) for shares it doesn't already own in the horticulture company.

PSP acquired a 13.78% stake in the grower, packer and marketer of fresh fruit and vegetables at A$2.60 per share in Oct. 26 last year.

Under the proposal, Costa's shareholders would receive A$3.50 apiece, reflecting a premium of 34.6% to the price PSP paid in October.

Further due diligence and negotiations on a potential scheme implementation agreement are expected to continue through July, the company said.

PSP has indicated that they have received approval from Australia's Foreign Investment Review Board (FIRB) to acquire Costa, however such approval may be required to be refreshed upon finalisation of any co-investors, Costa added.

PSP did not immediately respond to a Reuters request for comment.

($1 = 1.4981 Australian dollars) (([email protected]; Twitter: https://twitter.com/damnit_saladin;))