Metro Performance Glass (NZE:MPG) received a conditional, non-binding indicative proposal from CCP VI Bidco, to acquire the company for NZ$0.08 per share, according to a Tuesday filing with the Australian bourse.
CCP VI Bidco is managed by private equity firm Crescent Capital Partners, which owns Viridian NZ, the filing said.
The company's board noted that a potential merger with Viridian would likely face Commerce Commission scrutiny, with a lengthy and uncertain approval process.
The directors also said that this could disrupt business and financing, placing the company in "stasis" which may not be acceptable to its banks.
The board considers it unlikely that the proposal will be in the best interests of shareholders and has not yet replied to the takeover bid.
Company shares surged 23% in recent trade.
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