This article is from the Australian Property Journal archive
VITALHARVEST shares reached another record high yesterday after Roc Partners said it would continue lobbing superior takeover bids to thwart rival Macquarie in the prolonged tussle for control of the Costa Group orchards landlord.
The Sydney-based private equity firm yesterday put forward its eighth offer for Vitalharvest, at $1.29 per unit, or $353.65 million for all of its assets under the asset sale alternative.
Vitalharvest said its board has determined the offer is superior to Macquarie’s most recent bid. Macquarie, which put forward the initial acquisition bid late last year, has matching rights of five business days, and if decides not to exercise the right then Vitalharvest will enter into a scheme implementation deed with Roc.
The trust also said Roc had indicated that it was determined to go all the way in the tussle.
“For completeness, Roc has indicated that, in the event that MAFM makes a further offer under MAFM’s matching right, Roc ‘intends to overbid [that further MAFM offer] (and any subsequent offer) to deliver scheme proceeds to VTH unitholders equivalent to $0.01 per unit more than [the further MAFM offer] subject to [Roc] having a five business day confirmation period to confirm whether it will proceed with, and not withdraw, the Further Roc Offer’.”
Vitalharvest owns a $305 million portfolio of blueberry, raspberry and blackberry farms in New South Wales and Tasmania, and citrus properties in South Australia. Each are leased to Costa Group until 2026. Macquarie has struck a fixed 10 year agreement with the tenant in the event that it wins out in the battle.
Earlier this month exercised a call option to acquire a 16.2% stake in the trust from its manager Primewest.
