Textile firm Pod has accepted an NZD$8m (US$5.95m) offer from Melbourne-based The Merino Company for its Designer Textiles International (DTI) business unit.

The agreement is conditional on shareholder approval by ordinary resolution, on or before 29 June, Pod said.

DTI, which manufactures knitted merino fabric and garments, comprises two wholly owned subsidiaries, Designer Manufacturing Limited and Designer Textiles International Limited.

If the offer is accepted, total proceeds would be approximately $8m, giving rise to a capital surplus over book value of approximately $3m.

Pod has also received a notice of takeover offer from LWR Manufacturing Limited at a price of 50 cents per share.

Pod chairman George Gould said that the board was now working through the issues resulting from the takeover notice from LWR and the purchase offer from The Merino Company.

He has said that announcements to the New Zealand Exchange and advice to shareholders would follow as appropriate and in due course.