Chinese investor takes stake in Kresta
A Chinese investor has bought a stake in Kresta Holdings just under the takeover threshold in a $7 million deal with the window furnishings company's biggest shareholder.
Fund manager Hunter Hall revealed yesterday it offloaded most of its 22 per cent stake in the Malaga-based business last Thursday in an off-market trade.
Chinese national Xiaoyang Lu bought just under 20 per cent of Kresta from Hunter Hall $6.9 million at 23 cents a share.
Mr Lu is understood to be involved in manufacturing. He is not thought to have takeover ambitions with Kresta and was rather following a flow of offshore investment in Australian businesses now that the dollar had weakened.
The investment is believed to have been welcomed by Kresta's board.
Hunter Hall's exit ends an association of about 16 years with Kresta, an investment which has not borne much fruit for the ethical fund manager. It has also been dragged into a few tussles for control of the company.
In 2010-11, the firm helped Kresta repel a takeover bid by entrepreneur Ian Trahar. Hunter Hall has also supported the board at the past two annual meetings when 19 per cent shareholder Fiesta Design declined to support executive pay.
The board avoided a second strike against the company's remuneration report last month when Queensland-based Fiesta abstained instead of joining the previous year's no vote of 45 per cent.
Kresta's shares were unchanged on 19 cents at 10.55am.
