Furnishing fabrics and wallpapers supplier Colefax Group, which also includes Kingcome Sofas, is planning to launch a tender offer to buy up to 14% of its issued share capital from shareholders.

Colefax said that it is proposing to buy up to one million of its ordinary shares via the tender offer at the lower of 700 pence a share, or 105% of its average closing mid-market price a share over a set five days.

Based on 700 pence a share, the tender offer is worth £7.1m. The price is a 7.6% discount to the company’s closing price of 757.50 pence reported on 31 August.

A statement said: “The Company has engaged Peel Hunt to implement the Tender Offer. Pursuant to the Tender Offer, Peel Hunt will purchase, as principal, up to a maximum of 1,013,254 Shares (being 14.0 per cent. of the Company’s issued ordinary share capital).

“The Company has granted a put option to Peel Hunt pursuant to the Repurchase Agreement under which Peel Hunt may require the Company to purchase at the Tender Price the Shares purchased by Peel Hunt pursuant to the Tender Offer. Shares that are purchased from Peel Hunt by the Company will be cancelled. There is no guarantee that the Tender Offer will take place.”