Report gives nod for Kresta takeover
UPDATE 3.15pm: Blinds maker Kresta Holdings looks set to be taken over by an independent report said a Chinese suitor's offer of 23 cents a share was both fair and reasonable.
The independent report by KPMG Corporate Finance noted significant work and cash was required to restructure the business to improve its profitability and that the offer was the only option available for shareholders to realise value in excess of recently traded prices.
Independent directors of Kresta have unanimously recommended shareholders accept the offer from Ningbo Xianfeng New Material Co.
Meanwhile a change of director's interest notice showed Ningbo boss and Kresta managing director Xianfeng Lu had recently boosted his stake in the company to above 20 per cent by purchasing nearly a million dollar's worth of new shares on the market.
Chinese authorities have already approved the $34.5 million takeover.
Ningbo has said it had no plans to make major changes to Kresta and intended to maintain the company's staff as well as its Malaga-based operations.
The unconditional offer is open until August 29.
Kresta shares closed steady at 23 cents.
