Kresta board backs takeover


KrestaAustralia’s biggest blind and curtain maker, Kresta, is urging shareholders to accept a $34.5 million takeover offer from China.

A subsidiary of Ningbo Xianfeng New Material Co, whose major shareholder is Kresta’s new boss Lu Xianfeng, made a play for the Australian firm last week.

Kresta on Tuesday said an independent expert’s report prepared by KPMG had found the 23 cents a share offer from Suntarget Trading to be fair and reasonable.

As a result, the directors of Kresta that are not associated with the offer have recommended shareholders accept the bid from the Chinese predator.

A statement from Kresta chairman Richard Taylor said the offer was fair and a premium to the company’s share price in the three months before the bid was made.

He also said that there was still much work to be done on a restructure of Kresta to improve its profits.

Shares in Kresta were flat at 23 cents at 1029 AEST.

Suntarget already holds a 19.9 per cent stake in Kresta.

The Chinese company has said that it was keen to acquire Kresta so it could have a greater influence over the Australian company and enhance its business opportunities.

It intends to maintain Kresta’s 700 strong workforce and its operations in Australia if its takeover succeeds.

The offer was made after Kresta in February reported a 69.7 per cent plunge in first half net profit to $565,000.

Kresta has made blinds for more than four decades and is the biggest window coverings manufacturer and retailer in Australia and New Zealand.


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