BUSINESSDESK: Shareholders of Renaissance Corp, which used to have a monopoly on national supply of Apple products, have voted to sell its IT distribution division to Exeed Ltd, halving the size of its balance sheet.
The vote was secured the required majority at a special meeting in Auckland and will see information technology distributor Exeed take over the supply of Apple, Fuji, Cygnet, Belkin and Ozaki and acquire all the company's stock, valued at about $2.5 million.
Exceed will pay $2.3 million in goodwill and about $570,000 for fixed assets.
The sale means Renaissance's revenue will more than halve to $80 million from $180 million, based on the company’s budget for 2012. Net interest-bearing debt is wiped out.
Under the agreement, the company will exit the distribution business. It will be broken into two parts, specialist Apple retailer Yoobee and a specialist education institution Yoobee Design College, formerly known as Natcoll.
Renaissance forecasts Natcoll's earning to increase by 13% to $2.6 million in 2012. Yoobee is expected to generate earnings before interest tax depreciation and amortisation of $900,000, while overheads are predicted to be about $1.1 million.
It plans to resume dividend payments by September 2013.
"With the plans we have in place for online delivery and new campuses, we think we should maintain a growth rate of something similar over the long term," chief executive Shaun Rendell said.
The company also announced it will relocate its head office to the Yoobee School of Design in the Auckland suburb of Onehunga.
Shares in Renaissance have gained 43% this year and recently traded at 14 cents.
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