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Textile design company Pod has received a letter of intention to make a takeover offer from Lane Walker Rudkin (LWR) Manufacturing.
Pod said today the letter advised that LWR had an interest in making a takeover offer for all the shares in Pod at a price of 50 cents per ordinary share, but that it had not been in a position to formulate a formal offer to date.
The offer values Pod at $22.5 million.
LWR had said it was intending to deliver to Pod a formal notice of intention to make a takeover offer sometime today, Pod chief executive Malcolm Walkinshaw said.
Any takeover offer would be subject to a 90 per cent minimum acceptance condition.
The letter had said LWR was keen to deliver bid certainty and for that reason intended to negotiate pre-bid agreements with significant shareholders, but those negotiations have yet to take place.
Pod shares closed at 44c yesterday, having ranged between 68c and 29c in the past year.
- NZPA
