Wednesday 29th January 2014
|Text too small?|
Shareholdings in Renaissance Corp have given the green light to sell its Yoobee School of Design, leaving an ailing retail unit on the company's hands.
At a special meeting in Auckland today, investors approved the sale of Yoobee to Academic Colleges Group for a net $13.3 million, with a potential earn-out of up to $1 million based on 2014 earnings. Independent adviser KordaMentha considered the deal fair to the company's shareholders.
The proceeds will go towards repaying debt, and would leave cash reserves of about $7 million, most of which will be held to distribute to shareholders on the resolution of its retail issues.
Chairman Colin Giffney told shareholders the board would prefer to fix the retail unit before returning cash from the sale.
"Yet another party is looking at acquiring the retail operations. That would be the best outcome," Giffney said. "One fallback position would be to multi-vend product. We do not believe we can turn the retail operations to profit as a public listed company."
Renaissance shares rose 0.5 cents, or 4.2 percent, to 12.5 cents in trading today, valuing the company at $5.45 million.
No comments yet
NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record