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

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news