Costa Group Holdings Limited (ASX: CGC) has entered a Scheme Implementation Agreement (SIA) with a consortium led by Paine Schwartz Partners, LLC (PSP) for the acquisition of all outstanding Costa shares. The consortium includes entities controlled by PSP, Driscoll’s Inc, and British Columbia Investment Management Corporation. PSP and Driscoll's Inc currently hold about 19.62% of Costa shares.Under the scheme, Costa shareholders will receive AU$3.20 per share in cash.
The board unanimously supports the scheme and recommends shareholders vote in favor of it, provided no superior proposal arises and independent experts continue to endorse it. The scheme is subject to shareholder approval and regulatory clearances, with implementation expected in Q1 2024.
The Scheme Consideration values Costa's equity at approximately AU$1,496 million and an enterprise value of about AU$2,459 million, offering premiums of 43% to the closing share price on October 25, 2022. The board emphasizes the scheme's attractiveness, delivering certainty and an attractive premium to shareholders in an uncertain business environment.
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