This article is from the Australian Property Journal archive
VITALHARVEST Freehold Trust shares hit another record after Roc Partners hit back in tussle with Macquarie for control of the Costa Group orchards landlord, so far making good on its intentions to continually outbid its rival.
The Sydney based equity firm upped its offer – its ninth in the ongoing tit-for-tat – to $1.33 per share, or $357.35 million for all of the assets as an alternative offer. They come in above the most recent Macquarie offer of $1.295 per unit.
However, the scheme of implementation deed did contain some differences from its previous offer made in late May, including a 2c per unit difference between the trust scheme and asset sale (which equates to $1.31 per unit), lowering the payment under the facilitation deed to the manager Primewest from a maximum of $8 million to $4.5 million, a deadline of acceptance for next Tuesday, and reinserting the matching right provision in favour of Roc.
Vitalharvest said Roc has not indicated whether it maintains the intention it stated with its last offer that it intends to overbid any further Macquarie offers by an equivalent of 1c per unit. In this case, it has exceeded that gap.
“The VTH RE Board has determined that the Ninth Roc Offer would be reasonably likely to result in a superior proposal to the Ninth MAFM Offer of $1.295 per unit (and equivalent under the asset sale alternative), received on 1 June 2021,” Vitalharvest said.
Macquarie has five-day matching rights if the Vitalharvest does determine the Roc offer a superior proposal.
Vitalharvest shares hit a new high of $1.33 yesterday following its announcement of the latest 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.
Last month it exercised a call option to acquire a 16.2% stake in the trust from its manager Primewest.
