Renaissance shares have jumped 40 per cent after the NZX-listed company announced it would sell its computer distribution business – once the heart of the company – to privately owned competitor Exeed.
The sale price was $2.3 million, plus $2.5m for stock at cost price and $570,000 for fixed assets. The transaction was contingent on shareholder approval at a vote due to take place on July 6.
Renaissance chief executive Shaun Rendell said its distribution division employed 30 staff and the plan was to transfer as many as possible of them to Auckland-based Exeed.
Exeed chief executive Justin Tye said at this stage he could not confirm whether or not there might be any redundancies.
Renaissance distributes Apple, Fuji Xero and Belkin equipment but has branched out into retailing through its Yoobee computer stores, as well as into the private education market through its $6m purchase of tertiary institute NatColl in 2007.
Rendell said in a statement that the two companies believed the information technology distribution market in New Zealand needed to be rationalised and, with the purchase of Renaissance, Exeed would have the scale to become the second-largest player in the industry, behind multinational TechPacific.
“Renaissance has had a long association with Apple in New Zealand. We are proud of the way we have represented the brand for over 27 years,” Rendell said.
“The time had come to get bigger in the industry or get out. We admire the Exeed team and we are pleased, with Apple’s blessing and subject to shareholder approval, to hand the brand on to them,” he said.
Renaissance’ share price soared above $1 when Apple’s iPod became a hit, only to slide when Apple axed its exclusive relationship with the company and began cutting distribution margins in 2008.
Exeed, which is majority owned by Tye and business partner Andrew Bain, distributes equipment from Hewlett-Packard, Samsung and NetGear.
– © Fairfax NZ News
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