Australian fruit and vegetable grower, Costa, has revealed that U.S. private-equity firm Paine Schwartz Partners has adjusted its initial takeover offer after months of negotiations.
Paine Schwartz is now suggesting a deal at a price of AU$3.20 (US$2.06) per share for all outstanding stock that it does not currently possess. This offer is stated to be the firm's final and most attractive proposal.
Compared to the previous approach of AU$3.50 per share made by Paine Schwartz in May, the revised non-binding proposal represents a reduction in value. Costa's equity is now estimated to be worth approximately AU$1.49 billion.
Having previously acquired a 14% stake in Costa in October 2022 at a price of AU$2.60 per share, Paine Schwartz's latest move has prompted further discussions between the two entities.
"The Costa Board, with the assistance of financial and legal advisors, is currently reviewing the updated non-binding offer and maintaining an active dialogue with Paine Schwartz regarding the terms and conditions," Costa stated in a regulatory filing on Monday.
