RNS
11/08/2014 09:43
ADDRESS
REL: 0943 HRS Renaissance Corporation Limited
ADDRESS: RNS: Address to meeting August 11 2014
ADDRESS TO MEETING AUGUST 11 2014.
Today's resolution to liquidate Renaissance has been a long time coming.
At the 29 January 2014 Special General Meeting, shareholders voted to sell
our principal operating business, the Yoobee School of Design. It was stated
at that time that 'once sold, there will be little left of value in
Renaissance'. In February we also sold the Yoobee retail business after more
than 12 months of trying. We interviewed potential Liquidators in March. At
the 11 April 2014 Annual General Meeting, the Board advised shareholders that
Renaissance had net assets of $7.2m, and that the Board's preference
'assuming no compelling alternative is presented' was to proceed to a
liquidation of Renaissance.
This protracted timeframe is the result of the Board seeking to resolve all
the outstanding issues that it can before liquidation in order to maximize
the position for shareholders. Getting urgency into negotiations to extricate
ourselves from contractual commitments has not been easy. However we feel
that we have taken the process as far as we can and any outstanding issues
will be more effectively handled under liquidation.
The last decision for the Board to make was whether there were any more
attractive alternatives to put before shareholders, such as the sale of the
cashed up shell of Renaissance. Our Chairman spoke to this at some length at
the AGM, expressing his view that shareholders of back door listing vehicles
were usually short changed. Nonetheless the situation of Renaissance has
been well known in the market since January of this year, and the Board has
publicly stated that it would entertain any proposals. There were four
approaches in total. None of the approaches matured into proposals and they
did not change our view that the best outcome was to return cash to
shareholders.
There has been no material change to the financial position of Renaissance as
set out in the notice of meeting although the liabilities have been further
reduced (and uncertainty removed) as settlements have been reached.
Accordingly, shareholders can expect to receive tax-free distributions
totaling, approximately the net asset figure of 16.6 cents per share. The
distributions will be solely in the hands of the Liquidators but are likely
to be by way of an interim distribution of 13 cents per share to be paid
within 6 weeks of the appointment of the liquidators, and a further
distribution of the balance once the liquidation is finalised.
The directors unanimously support the proposal to appoint a liquidator as,
based on all advice taken, it provides the most economical and efficient way
of returning capital to shareholders.
Chairman of the meeting
Richard Ebbett
End CA:00253677 For:RNS Type:ADDRESS Time:2014-08-11 09:43:53
