Metro Performance Glass opted against selling its Australian Glass Group division, deeming a revised offer not in the company's or shareholders' best interest.

Originally intended to reduce bank debt, the New Zealand-based firm will retain AGG and pursue a capital raise to decrease debt, foster AGG's growth, and improve operations in New Zealand.

The company plans to finalise the capital raise, targeting at least $15 million through an entitlement offer to existing shareholders.

Metro Performance Glass CEO Simon Mander will also resign, effective May 10.