Costa Group shareholders approve private equity takeover

The news: Shareholders in Australia’s top fruit and vegetable supplier Costa Group have approved a takeover bid from a consortium led by private equity firm Paine Schwartz Partners. The consortium also includes berry giant Driscoll’s and British Columbia Investment Management Corporation.

The numbers: In total, 98.35% of Costa shareholder voters backed the takeover scheme for the revised bid of $3.20, after PSP lowered its initial offer of $2.60 in September last year. More than three quarters of Costa's shareholders voted in favour of the scheme. Costa shares have edged slightly higher by Tuesday afternoon, trading just below the scheme price at $3.19.

The context: The takeover is still subject to Federal Court approval, with a special hearing scheduled for 7 February.

Costa grows, packs and markets fresh fruits and vegetables across more than 7200 hectares of planted farmland, 40 hectares of glasshouse facilities and three mushroom growing facilities across the nation. It also has foreign joint venture interests in Morocco and China.