Damba to sell property after buy-back approved

Listed office furniture manufacturer Damba Holdings is actively seeking a buyer for its Manukau property, after gaining Inland Revenue Department permission to proceed with its $2 million share buy-back.

Damba will buy back one of its shares for every 100 held at $11.20 a share, an effective return of 11.2c a share.
Damba shares last traded at 71c.

Simon Wallace, managing director of Damba, said the offer to buy back shares was sent to shareholders yesterday and would be effective on April 9.

The Inland Revenue Department had advised that the buy-back would be tax-free to shareholders, and the company would not have any tax liability.

Mr Wallace said Corporate Equities, Damba's controlling shareholder, which he and Stephen Bryant own, would participate in the buy-back and get about $1.236 million.

Shareholders could expect another return of capital after Damba's office, showroom and factory complex at Manukau was sold and leased back to Damba. A buyer was now being actively sought for the building.

Mr Wallace said that, subject to Inland Revenue Department approval, the proceeds of the sale would be used to buy back more shares. - Joe Helm