Australia's biggest blind and curtain maker, Kresta, is urging shareholders to accept a $34.5 million takeover offer from China.
A subsidiary of Ningbo Xianfeng New Material Co, whose major shareholder is Kresta's new boss Lu Xianfeng, made a play for the Australian firm last week.
Kresta on Tuesday said an independent expert's report prepared by KPMG had found the 23 cents a share offer from Suntarget Trading be fair and reasonable.
As a result, the directors of Kresta that are not associated with the offer have recommended shareholders accept the bid from the Chinese predator.
A statement from Kresta chairman Richard Taylor said the offer was fair and a premium to the company's share price in the three months before the bid was made.
He also said that there was still much work to be done on a restructure of Kresta to improve its profits.
Shares in Kresta were flat at 23 cents at 1029 AEST.
Suntarget already holds a 19.9 per cent stake in Kresta.
The Chinese company has said that it was keen to acquire Kresta so it could have a greater influence over the Australian company and enhance its business opportunities.
It intends to maintain Kresta's 700-strong workforce and its operations in Australia if its takeover succeeds.
The offer was made after Kresta in February reported a 69.7 per cent plunge in first half net profit to $565,000.
Kresta has made blinds for more than four decades and is the biggest window coverings manufacturer and retailer in Australia and New Zealand.
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