CGC +12.08%: The fruit and veg grower, packer and marketer rallied today on a private equity takeover tilt lobbed at $3.50 per share. Paine Schwartz Partners had acquired 13.78% of CGC in October at $2.60, at the time saying they had no interest in taking the lot, however, we now know that was smoke and mirrors with the specialist in sustainable food chain investing back at the table, having completed 4-weeks of due diligence. There are some conditions associated with the bid, however, they know CGC well, have been a large investor for 10 months, have already received Foreign Investment Review Board (FIRB) backing and have the $$ to complete. In other words, this is a highly credible bid with a high chance of completing at the stated $3.50 per share, which would include any dividends declared before they wrap up the scheme of arrangement.
MM believes the bid is highly credible, and will likely complete
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