☕️ Avocado M&A

It's back to the future for the nation's largest grower of the fruit.

Good morning.

As we head into what looks like it is going to be a very hot summer in Australia, perhaps its time to start thinking about how to keep cool during the warmer months. The New York Times had an interesting read over the weekend about an initiative known as ‘Cool Biz’ in Japan: where office workers are encouraged to set aside their dark suits and don more energy efficient attire, allowing offices to ease up on the air-con.

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MARKET MOVERS

Market News: Shares in Geelong based fruit producer Costa Group were bid up on Friday after the company’s board agreed to to a lower takeover offer from US buyout firm Paine Schwarz.

There’s a been a fair bit of back and forth in this situation involving the nation’s largest avocado grower, which extends beyond this particular transaction. Paine Schwartz previously held a controlling stake in Costa, and floated the business on the ASX in 2015 at $2.25/share.

Then in what we previously described as an example of a Boomerang M&A it came back with an offer to buy the business back in July for $3.50/share. Then after Costa downgraded its earnings due to weather issues, it lowered its offer to $3.20/share. And now the deal is being done at that price, valuing the business at $1.5 billion.

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THE QUICK SYNC

  • How companies are embracing generative AI for employees…or not. (CNN)

  • The bushfire tech startups racing to help prevent another Black Summer. (Capital Brief)

  • BlueSky experienced record usage after Elon Musk flagged plans to charge all X users (TechCrunch)

  • The iPhone 15 launch shows the Cult of Apple is alive and well (Capital Brief)

TRADING FLOOR

M&A:

  • There is a growing belief that Ampol is no longer actively pursuing a bid for 7-Eleven. (The Australian)

  • An expert has determined that TPG Capital's $1.8bn buyout offer for InvoCare is "fair and reasonable." (AFR)

  • Potential buyers are once again showing interest in the technology sector, with companies like Iress, Link Administration, and Bigtincan believed to be among the targets. (The Australian)

  • Private equity firms, including Pacific Equity Partners, are considering an examination of Pernod Ricard's operations in Australia and New Zealand. (The Australian)

  • Brookfield's advisors have officially started the auction for the logistics company Linx Cargo Care Group. (AFR)

  • Nick Bolton says he has garnered sufficient support from unitholders to request a meeting to try and liquidate the Magellan Global Fund. (AFR)

Capital Markets:

  • AirTrunk is considering an IPO worth over $10bn with Macquarie Asset Management and PSP sending out an RFP as part of the process. (AFR)

  • Star Entertainment is finalising a comprehensive capital restructuring plan that is anticipated to incorporate a $750m equity raising. (AFR)

  • Quadrant Private Equity's Pacific Hunter hospitality business has received a lifeline as its lenders have agreed to extend $228m debt for an additional two years. (AFR)

  • Seafolly is nearing the completion of a private debt restructuring worth $10m. (Capital Brief)

VC:

  • None

Others:

  • How to pitch Paul Bassat, and the art of valuing startups (Capital Brief)

FROM CAPITAL BRIEF

After months of planning, designing, testing and developing, the Capital Brief website went live in late August.

One of the most interesting aspects of the build was how AI was used in the process. And the lessons from that experience have influenced the way we approach AI in our newsroom and coverage.

THE WATERCOOLER