Adultshop to sell core businesses

Takeover target Adultshop.com says it will start a sale process for the sale of its core businesses in a bid to optimise shareholder value.

The decision comes after a strategic review that was aided by Pitcher Partners.

In a statement today, Adultshop said it will sell its retail and web businesses and its Calvista wholesale division either in two parcels or as a whole.

It said that any divestment will be put to a shareholder vote.

"The board continues to search for opportunities for delivering value with a preference towards resource projects," the company said.

"The board will provide the market with periodic progress updates at relevant junctures."

Adultshop is currently a takeover target for Melbourne-based business Sexyland. The Northbridge business has recommended shareholders reject the offer.

Shares in Adultshop closed unchanged at one cent today.