A Chinese textile maker has launched a $27 million takeover bid for Perth -based manufacturer of blinds and curtains Kresta Holdings.
The West Australian reports that the bid will raise fears that the jobs of Kresta workers from Australia and New Zealand could be lost to overseas operations.
Kresta is the largest local blind and curtain manufacturer and employs about 700 people across its manufacturing and retail operations in those two countries.
Ningbo Xianfeng New Materials, which trades under the brand name APLUS, is making the takeover bid. The company currently has a 20 per cent stake in Kresta and has therefore passed the takeover threshold. It can now bid for the remaining 80 per cent stake.
According to a Kresta statement released this morning, the company’s board has not yet fully considered the proposal. It advised shareholders to take no action at this stage.
According to the West Australian, Kresta representatives said APLUS would be unlikely to move its manufacturing operations overseas if its bid is successful.
"Since APLUS has been involved, all the communication they've been making is about a firm commitment to Australian manufacturing," chief financial officer Brendan Cocks said.