The West

Kresta awaits news on Chinese offer

Shares in Kresta have jumped to their highest levels in more than two years after a Chinese suitor said its $34.5 million takeover offer would proceed.

A subsidiary of Chinese sunshade maker Ningbo Xianfeng New Material, also known as APLUS, said Chinese authorities had approved the 23 cent-a-share cash offer flagged last month.

Kresta's shares were 2 cents, or 9.5 per cent, higher at 23 cents by 3.28pm after coming out of a trading halt.

Perth-based Kresta said shareholders should take no action in response to the offer while an independent expert's report to assess the takeover bid was prepared.

"Kresta's target's statement and KPMG's independent expert's report will be sent to Kresta shareholders within 14 days,” Kresta said.

Suntarget's unconditional offer is open until August 29. The bidder already holds a 19.9 per cent stake in Kresta.

Ningbo was founded by Kresta's managing director Lu Xianfeng in 2003.

Suntarget said it was keen to acquire Kresta so it could have a greater influence over the WA company and enhance its business opportunities.

It had no plans to make major changes to Kresta and intend to maintain the company's staff as well as its Malaga-based operations.


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