Private Melbourne-based company SexyLAND Australia has launched a cash takeover bid for Northbridge-based Adultshop.com.
SexyLAND, which is a chain of female-friendly adult department stores, has proposed to offer 0.84 cents for each ordinary Adultshop.com share post the $1.2 million rights issue.
The Melbourne group is also offering 0.006c for each option issued under the rights issue.
"SexyLAND encourages all Adultshop shareholders to take up their entitlements in the [rights issue] in full," the company said.
"If Adultshop shareholders do not take up their entitlements, the associates of the directors of Adultshop, by underwriting the entire [rights issue], may together hold more than 50 per cent of the shares in Adultshop."
In a statement today, Adultshop urged shareholders to take no action on the unsolicited offer, adding it will release its recommendation until the board has reviewed the proposal.
