Feltex tipped to launch $300 million float this week

Carpet maker Feltex will formally launch its $300 million float plan this week, the Dominion Post reported today.

The newspaper said details remain unclear but the flotation is expected to be worth around $400 million, made up of $100 million debt and $300 million shares.

The shares are expected to offer a before tax dividend yield of between 8 per cent and 10 per cent.

The company is controlled by venture capitalist Credit Suisse First Boston Asian Merchant Partners LP (Csfbamp), which is expected to sell its holding.

In February, Feltex announced a net profit of $11.4 million for the six months to December 31, up $10.2 million on the previous year.

But the strong New Zealand dollar has hit the company hard and it is in the process of laying off about 20 per cent of workers at its Christchurch carpet plant.

- NZPA