Story image

Renaissance capital return unlikely before June

11 Apr 2014

Shareholders in Renaissance Corp, which sold its last business unit earlier this month, are unlikely to receive any payments before June in what will probably be a two-part distribution if they decide to liquidate the company.

Chairman Colin Giffney told shareholders at today's annual meeting in Auckland the board wants to wrap up existing leases and contracts before appointing a liquidator, which investors will then vote on.

As at March 31, Renaissance had net assets of $7.22 million, or 16.6 cents per share, and could receive an extra $1 million, or 2.2 cents a share, if Youbee School of Design meets certain earn-out targets. It also has a contingent liability for leases it assigned if it's unable to release the premises.

"Our preference at this stage, assuming no alternative is presented to us, is to proceed as quickly as possible to tidy the affairs of the company and then call a meeting of shareholders to appoint a liquidator," Giffney said in speech notes published on the stock exchange.

"There is unlikely to be any distribution before June. At this stage any distributions are likely to be in two parts and can only be made after appropriate advertising for creditors and other liquidator procedures."

Renaissance sold its ailing retail business earlier this month, having sold the design school in January when it signalled plans to liquidate the business and returns capital to shareholders.

Giffney said the board had been approached by a group of shareholders willing to entertain proposals to use the company as a shell for backdoor listings. Renaissance was approached in February, but hasn't heard anything since.

"We have considered restructuring the company to allow those that wished to stay in and take their chance on some future back door listing opportunity to do so and those who wished to cash out now to do so," Giffney said.

"Personally I find it hard to understand why shareholders would vote to sell a great little business like the Youbee School of Design and then take a punt on some unknown new activity, but ultimately that would depend on shareholder desires."

The board will consider any proposals if they have merit, but if none emerge, will proceed to voluntary liquidation as soon as possible, he said.

The shares rose 6.7 percent to 16 cents in early trading.

(BusinessDesk)

Hands-on review: The Fitbit Versa Lite
At first glance, the Versa and the Versa Lite look exactly the same. For someone who is not a Versa user, the two can be easily mistaken.
Farmers looking for data to help change bad habits
It is no secret that agriculture is a massive cause of environmental issues in NZ. Farmers say they are willing to change, if they get the right data.
Tech Data to distribute Nutanix backup solution in A/NZ
Tech Data will distribute HYCU Data Protection for Nutanix backup and recovery software to their network of partners across Australia and New Zealand.
Veeam releases v3 of its MS Office backup solution
One of Veeam’s most popular solutions, Backup for Office 365, has been upgraded again with greater speed, security and analytics.
What to expect from the Surface Hub 2S
Microsoft has released details about the next iteration of the Surface Hub featuring mobility, reduced weight and a 85in version in the works.
Gartner: A/NZ IT spending growth will surpass worldwide
2019 IT spending is expected to grow 2.2% in New Zealand, and 3% in Australia, far exceeding the 1.1% global average.
Informatica launches new AI-driven innovations
Informatica announced new features and AI-driven innovations across five key segments.
Hands-on review: The ruggedly tough CAT S61 smartphone
The driveway beckoned me, so I dropped the phone several times.  Back in the study, close examination has failed to reveal a single scratch.