Textile design company Pod has accepted an offer for its Designer Textiles International (DTI) business unit from Melbourne-based The Merino Company.
Total proceeds from the sale are expected to be about $8 million, giving rise to a capital surplus over book value of about $3 million.
Earlier todaychairman George Gould said Pod was considering the offer, along with notice from LWR Manufacturing Ltd that it intended making a takeover offer of 50 cents per share for all the shares in Pod, valuing Pod at $22.5 million.
He described the Melbourne company's offer as well backed and attractive.
The sale will effectively make Pod debt free.
Also to come is the sale of DTI's substantial property in the south Auckland suburb of Otara, which was now on the market and not a part of The Merino Company's offer.
Pod would then concentrate on its two remaining businesses, Michele Ann and Mollers Homewares, both of which were trading well and had good prospects, Mr Gould said.
"We would be in a good position to pursue further expansion, either organically or by acquisition."
DTI's management and staff of about 120 would continue to be employed by DTI after a sale. Settlement would be on July 2.
Following acceptance of The Merino Company offer, Mr Gould said the agreement was conditional on shareholder approval by ordinary resolution on or before June 29.
