The board of wool scourer and exporter Wool Services International has been notified of a takeover bid for the company, which would see 75% of the shares sold for 45 cents each.
The receivers of companies Plum Duff Limited and Woolpak Holdings, which held 64% of the shares, have signed a lock-up agreement with investment company WSI Holdings in Australia - an associated company of Melbourne-based wool merchant and processor Lempriere Holdings.
Both companies, which were placed in receivership in December 2010, were owned by interests connected to the late Alan Hubbard from South Canterbury.
Senior Wool Services employees who own 11% of the company have also signed an agreement with Lempriere Holdings to sell their shares for 45 cents each.
Wool Services chairman Derek Kirke says under the takeovers code, the board has to have an independent appraisal carried out on the offers.
He says once the board has that report it will be sent to shareholders, along with a detailed report from the directors of the company.
Mr Kirke says Wool Services cannot say whether or not it is a good thing for the shareholders until that report has been received and expects an appraisal could be completed in about a month.