The competition for Vitalharvest Freehold Trust is heating up, with Macquarie Group’s agricultural arm lifting its offer for the business to $1.24 per share, or $229 million.
Macquarie Agricultural Funds Management, which is part of Macquarie Infrastructure and Real Assets (MIRA) is offering an alternative proposal where it can buy the assets in the fund for $344.4m.
It comes after rival bidder, private equity firm Roc, increased its bid on Thursday night to $1.23 per unit, or $342.55m as an asset sale alternative.
Roc manages more than $7.1bn worth of assets around Asia and sources have suggested that it is receiving backing for the buyout from the Australian superannuation fund Cbus.
Some say that the move is an interesting one for Cbus, given that it typically shies away from opportunities involving operational risk and much of the Vitalharvest performance relies on how its tenant Costa Group is performing.
The proposal is the sixth brought to the table by MIRA and the fifth by Roc, as the pair battle it out for Vitalharvest, the landlord of fruit and vegetable grower Costa Group.
The latest offers from both groups permit the payment of the 2.5c per Vitalharvest unit.
Vitalharvest says it is considering both offers and will update the market as soon as possible.
Vitalharvest owns a portfolio of berry and citrus farms in NSW, South Australia and Tasmania, which are leased to Costa Group.
Earlier, Roc, advised by Kidder Williams, said it had commitments from lenders Rabobank and Commonwealth Bank to fund its bid and equity funding from its Roc Agri+ Infrastructure Fund.
However, sources say that unlike Roc, MIRA has an existing relationship with Costa, which counts MIRA as its landlord for other assets, and is now in the box seat.
Independent expert Grant Thornton had previously concluded earlier on in the contest that the Macquarie scheme was in unitholders’ best interests, and valued the Vitalharvest Freehold Trust units at between 97c and $1.11.
Grant Thornton had said if the scheme was not implemented, a planned $300m asset sale to MIRA, was also fair and reasonable.
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