This article is from the Australian Property Journal archive
MACQUARIE wasted no time hitting back in the takeover tussle for Costa Group orchards landlord Vitalharvest on Friday, lobbing a sweetened offer just hours after rival Roc Partners upped its own bid.
Vitalharvest announced trading pauses twice during the day, first as it prepared to announce Sydney-based private equity firm Roc Partners’ bid of $1.25 per unit, or all of its assets for $346.25 million as an alternative proposal, and then again a few hours later as Macquarie put forward an offer of $1.26 per unit or $348.1 million for the assets.
This is Macquarie’s seventh bid. Its sixth came a week earlier and was unanimously recommended by the Vitalharvest board.
The bids arrived one day after Vitalharvest announced it would pay a 2.5 cents per security interim distribution on May 14. The distribution had previously been part of potential takeover agreements until an amended scheme implementation deed between Vitalharvest and Macquarie was agreed last week.
Macquarie made the first move for the trust late last year, and has matching rights of five business days before an offer becomes fully binding.
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.
ASX-listed Primewest acquired Vitalharvest’s external manager last year while taking an 11.8% stake that it has since built up. Primewest appeared set to use Vitalharvest as a springboard for a listed agricultural trust, but has been eyeing off a $350 million float of its agricultural trust that has just picked up vineyards and orchards in Victoria and South Australia.
Primewest is now set to merge with Centuria to form a $15.5 billion platform.
