Renaissance Capital Growth & Income Fund III, Inc. Announces Sale of Its Largest Holding, Laserscope, to American Medical Syste
June 06 2006 - 9:45AM
PR Newswire (US)
DALLAS, June 6 /PRNewswire-FirstCall/ -- Renaissance Capital Growth
& Income Fund III, Inc. (OTC:RENN), a business development
company, has announced that under the terms of a definitive merger
agreement, Laserscope (NASDAQ:LSCP), the largest holding in the
RENN portfolio, representing approximately 25.9% of the value of
the Fund, has agreed to be acquired by American Medical Systems
Holdings (NASDAQ:AMMD). American Medical will commence a tender
offer to acquire all of the outstanding shares of Laserscope at a
price of $31.00 per share in cash no later than Wednesday, June 14,
2006. Based on the $31.00 share price for Laserscope, the net asset
value of RENN will increase from the Friday, June 2, 2006 closing
of $11.58 to approximately $12.94, an 11.7% increase. When the
acquisition is completed, the Fund will receive $18,600,000 versus
a cost basis of $750,000 for shares owned, or 24.8 times cost. On
February 19, 2004, RENN sold half of its Laserscope position for
$21.47 per share. Taking both the February 19, 2004 sale and the
anticipated closing of the American Medical tender offer, RENN will
have realized gains of $29,981,396 on an initial investment of
$1,500,000. The Fund also holds options to acquire 34,923 shares,
which will cash out at closing of the tender offer. Russell
Cleveland, President of Renaissance Capital Growth & Income
Fund, stated "Laserscope has been an exceptional investment for the
Fund. Congratulations to Eric Reuter, President of Laserscope, and
his management team and also to Robert Pearson of Renaissance
Capital for his skill and service as a long time Laserscope board
member. Medical investments that are successful fit the adage,
'doing well by doing good.'" About Renaissance Capital Growth &
Income Fund III, Inc. Renaissance Capital Growth & Income Fund
III, Inc. is a closed-end Business Development fund concentrating
on investing in emerging publicly owned growth companies, primarily
through private placements of convertible securities. The Fund
seeks long-term capital appreciation and current income by
investing in emerging growth companies. The Fund's current
Portfolio consists of investments in 23 businesses in various
industries. The Fund has paid its investors a total of $13.51 per
share in cash distributions since its initial public offering in
1994 at $10.00. Forward-Looking Statements This report contains
forward-looking statements. Such statements reflect the current
views of the Fund with respect to future events and are subject to
certain risks, uncertainties, and assumptions. Although the Fund
believes that the expectations reflected in such forward-looking
statements are reasonable, should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual future results or events may vary materially from
those described herein. Past performance is not indicative of
future results. For additional information, please visit
http://www.rencapital.com/. Investor Contact: Media Relations
Contact: RENN Capital Group, Inc. Chris Rosgen Michelle Sparks:
214-891-8294 Capital Market Relations (949) 481-9739 "FINDING
VALUE, ADDING VALUE, REALIZING VALUE" DATASOURCE: Renaissance
Capital Growth & Income Fund III, Inc. CONTACT: Investors,
Michelle Sparks of RENN Capital Group, Inc., +1-214-891-8294, , for
Renaissance Capital Growth & Income Fund III, Inc.; or Media
Relations, Chris Rosgen of Capital Market Relations,
+1-949-481-9739, for Renaissance Capital Growth & Income Fund
III, Inc. Web site: http://www.rencapital.com/
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