The owner of carpet firms Ryalux and Burmatex has announced plans to buy up the shares of its smallest private investors.

Ossett based Airea PLC wants to buy and cancel £1.2m of shares, representing around 22 per cent of the company’s total issued share capital.

Its tender offer to buy up the shares would — the business says — provide a guaranteed liquidity event for all qualifying shareholders, reduce administrative costs and increase earnings per share for remaining stockholders.

Airea says close to 500 of its circa 1,240 shareholders hold 1,000 shares or less, making them uneconomic to trade because of associated costs. Airea plans to fund the buy back through existing cash resources.

Ryalux makes carpets for domestic use with its sister firm Burmatex majoring in the contract sector. Airea made £330k before tax on sales down 6.8 per cent to £23.3m in 2013–14.