Bremworth (NZE:BRW) has received a binding New Zealand tax ruling from the Inland Revenue Department (IRD) on its proposed capital return, clearing a key step in Floorscape's planned acquisition of all the company shares, according to a Wednesday filing with the New Zealand bourse.

The ruling satisfies a key condition under the scheme implementation agreement, but the scheme remains subject to other requirements, including clearance from the New Zealand Commerce Commission, approval by the company shareholders, and final high court approval, per the filing.

The company said shareholders do not need to take any action at this stage, as reported in the filing.

The company's shares fell around 2% in recent Wednesday trade.