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Renaissance tackles takeover bids with strategic adviser

27 Nov 12

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

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