DT shares rally on $6m buyback

The buyback, at $1.50 per share, will be by way of a pro rata offer to all shareholders.

The company will buy a maximum of 3,999,056 ordinary shares over six weeks, starting today, returning about $6 million to shareholders.

Designer Textiles first announced the planned buyback earlier this month.

Chairman George Gould said at the time that the capital reduction was about working towards an optimal capital structure.

The capital reduction made no difference to the company's intention to seek growth by expansion of existing businesses and targeted strategic acquisitions, he said.

It represents about 15 percent of the company's $40 million market capitalisation.

Designer Textiles was the best performing stock on the New Zealand market last year, rising from 40c at the start of the year to $1.00.

It hit a high of $1.20 earlier this month after the buyback was first announced.

The company reported a $1.65 million net profit in the half year to December 31, up 25 percent on the same period a year earlier.

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