KEY POINTS:
Shares in Cavalier Corporation rose more than 8 per cent today after the company announced the completion of its purchase of a 70 per cent stake in Norman Ellison Carpets.
The company said it expected the transaction to be wrapped up within a day or two .
NZX-listed Cavalier hopes the stake will boost its presence in Australia. Norman Ellison, a privately owned yarn and carpet maker in Auckland, sells to both the domestic and Australian markets under its own brand.
Cavalier, also Auckland-based, manufactures and distributes broadloom carpets to domestic and export markets.
The venture received Commerce Commission clearance in November.
Norman Ellison shareholders will receive shares in Cavalier as payment.
Cavalier will issue $5.1 million of its own shares at market value to finance its stake, with the balance of $0.5m coming from borrowings.
Cavalier shares shot up 23c to $2.88 on thin volume in mid-afternoon trade. Shares have traded between $2.40 and $3.58 in the last year.
- NZPA
