Kresta has recommended that shareholders accept a takeover bid from Suntarget Trading, a subsidiary of Chinese textiles company APlus.
Kresta, based in Malaga, WA, is the country’s biggest blind and curtain maker. It has told investors that it would keep its manufacturing operations in Australia and make no significant changes to the business if the takeover was successful.
Suntarget is owned by Xianfeng Lu, who is also the managing director of Kresta in March.
Chairman Rick Taylor told the Australian Financial Review that, “We don’t envisage a reduction, we envisage an expansion.
“That’s the current board view and the view that Mr Lu was expressing to us prior to the bid.”
Kresta employs roughly 700 people across Australia and New Zealand.
Shareholders have been offered an unconditional 23 cents a share from Suntarget, telling them that an independent expert report from KPMG found this fair, reports News Corp.