In today’s briefing:
- Costa Group’s Low-Hanging Fruit: Paine Schwartz Renews Interest
- ELMO Software (ELO AU): $4.85/Share Offer From K1 Investment
Costa Group’s Low-Hanging Fruit: Paine Schwartz Renews Interest
- Costa Group Holdings (CGC AU), one of Australia’s largest fresh fruit and vegetable producer, is understood to be in the cross-hairs of Paine Schwartz Partners.
- According to the AFR, Paine is using Citi to buy shares up to $2.60/share a 16.6% premium to last close, with a 15% stake in mind.
- There’s a whiff of opportunism here after Costa’s recent EBITDA downgrade. However, the return of its major shareholder suggests value has emerged.
ELMO Software (ELO AU): $4.85/Share Offer From K1 Investment
- Elmo Software (ELO AU) has entered into a Scheme Implementation Deed (“SID”) with K1 Investment under which ELMO shareholders will be entitled to receive $4.85/share, in cash.
- The SID has the support of the independent board and ELMO’s three largest shareholders collectively holding ~33.4% of shares out.
- The Scheme is expected to complete in the 1Q23. The proposal requires FIRB approval. This looks done.
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