Kresta Holdings chairman Ian Trahar has launched a $47 million cash takeover bid to take full control over the warring window coverings manufacturer.
Kresta announced to the ASX today that Wildweb Enterprises, a private firm associated with Mr Trahar and 19.6 per cent shareholder Avatar Industries, would offer Kresta shareholders 32.5 cents a share.
The $46.9 million bid is conditional on Kresta shareholders rejecting substantial shareholder Hunter Hall Investment Management's attempts to oust Mr Trahar and fellow director Peter Hatfull from the Kresta board at an extraordinary general meeting February 14.
"I have little faith in the capacity of Hunter Hall's proposed new nominees to add value to Kresta," Mr Trahar said.
"They have not disclosed any strategy for the company and I believe there will continue to be considerable acrimony, uncertainty and instability at the shareholder level if they are appointed."
Hunter Hall, which holds 19.7 per cent of Kresta's shares, announced January 4 that it sought to remove Messrs Trahar and Hatfull from the Kresta board, citing concerns surrounding disappointing profits and a declining share price.
Mr Trahar said the takeover bid provided a resolution to the impasse between Kresta's largest two shareholders.
"There is a right way and a wrong way to seek to acquire control of a company," Mr Trahar said.
"By making this takeover offer, I am providing shareholders with a real offer at a substantial premium.
"In contrast, Hunter Hall is trying to take control of Kresta by controlling the Board without making any offer to shareholders and without paying anything for control."