Costa Group Holdings Limited: Update on Non-Binding Indicative Proposal

Costa Group Holdings Limited (ASX: CGC), Australia's prominent grower, packer, and marketer of fresh fruits and vegetables, offers an important update on the non-binding indicative proposal presented by Paine Schwartz Partners (PSP).

Revised Offer and Final Price

As reported on August 24, 2023, Costa has maintained an active engagement with PSP to facilitate the completion of their due diligence process. On September 16, 2023, PSP presented a revised non-binding offer of $3.20 per share. This offer includes a reduction for any permitted dividend of up to $0.04 if declared. Importantly, PSP has conveyed that this revised offer represents the best and final price achievable by the PSP-led consortium for the proposed transaction.

Costa's Deliberation and Ongoing Discussions

The Costa Board, in conjunction with its financial and legal advisers, is currently evaluating the revised non-binding offer. They are also in continuous discussions with PSP concerning the offer's terms and conditions. These efforts are aimed at enabling the Costa Board to comprehensively assess whether the revised non-binding offer serves the best interests of the company's shareholders.

No Certainty of a Binding Offer

It's crucial to note that there remains no certainty of receiving a binding offer or the realization of any transaction. As a result, Costa shareholders are not required to take any immediate action in response to this update. Costa is committed to keeping the market informed in compliance with its continuous disclosure obligations.

This release has been authorized by the Board of Costa Group Holdings Limited.

About Costa Group Holdings Limited (ASX: CGC)

Costa is a leading player in Australia's fresh fruit and vegetable industry, specializing in five core categories: berries, mushrooms, glasshouse tomatoes, citrus, and avocados. The company's operations encompass approximately 7,200 planted hectares of farmland, 40 hectares of glasshouse facilities, and three mushroom growing facilities throughout Australia. Additionally, Costa holds strategic foreign interests, including majority-owned joint ventures that encompass six blueberry farms in Morocco and four berry farms in China, covering around 750 planted hectares.

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