Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Renaissance hires strategic adviser, cites low stock price

Renaissance hires strategic adviser, says low stock price may spur takeover

Nov. 27 (BusinessDesk) - Renaissance Corp, which shrank its balance sheet with the sale of its IT distribution business, has hired Grant Samuel & Associates for a strategic review, saying its weak share price leaves the company vulnerable to a takeover.

The shares last traded at 15 cents, valuing the Auckland-based company at $6.3 million. The stock has about halved in value in the past two years.

The directors “believe that the current share price of the company is substantially below the value of its component divisions,” it said in a statement. “As a result, the company is vulnerable to a takeover offer, which may not adequately recognise the value inherent in the business.”

The remaining units are Yoobee, a specialist Apple retailer with 10 New Zealand stores and Yoobee School of Design, formerly known as Natcoll, an education institute with campuses in Auckland, Wellington and Christchurch.

The design school produced earnings before interest and tax of $2.25 million in its latest full year, up from $1.5 million in 2011, when its Christchurch campus was severely affected by the earthquakes.

Yoobee Retail has an ebit loss of $374,000 in 2012, down from a loss of $923,000 in 2011.

Renaissance said it hasn’t received a formal offer for its businesses yet. The work with Grant Samuel is expected to take three months.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news