22 Jun 2012

Renaissance deal boosts stock

7:05 am on 22 June 2012

Prices paid for shares in Renaissance Corporation surged by more than a quarter on Thursday after the company announced plans to sell its computer distribution arm.

The company plans to sell the business to its privately-owned rival, Exeed, for $2.3 million.

The deal, which is subject to shareholder approval, also involves Exeed paying another $2.5 million for the company's stock and $570,000 for its fixed assets.

Renaissance chief executive Shaun Rendell says it's a compelling deal and a good price.

If the deal is approved, he says the company's balance sheet will effectively be halved, but it will be well poised for future growth.

Mr Rendell says he expects strong support from shareholders when they vote on the deal on 6 July.

Shares in Renaissance rose 26.21% to 13 cents on Wednesday.