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 company [NZX:RNS] 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 shares have been trending lower since early 2006, when they were $1.60. Later that year it lost its exclusive right to represent Apple in New Zealand.
The directors "believe that the current share price of the company is substantially below the value of its component divisions", it says 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 says it hasn't received a formal offer for its businesses yet. The work with Grant Samuel is expected to take three months.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- READER POLL RESULT: Will a land tax on foreign-based house buyers cool the housing market?
- Facebook exec on info requests from NZ govt agencies: the numbers, and the criteria for forking over your data
- Concession on fees sees ANZ first onboard for Apple Pay
- EPL options narrow: Sky, beIN or nothing
- Speculation over Hilary Barry's next move
Most listened to
- Listen to the week’s top business news on NBR Radio’s week in review
- Matthew Hooton on Winston Peters’ plan to become prime minister
- Tim Hunter asks: Is the government planning to hand control of water to iwi?
- Rob Hosking breaks down the political and economic week that was: Has everyone gone tax mad?
- Rodney Hide on the technological development and economic advance in transport