Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


VINZ reiterates 'don’t sell' ahead of independent report

VINZ reiterates don’t sell notice ahead of independent report

Jan. 18 (BusinessDesk) – Vehicle Inspection New Zealand (VINZ) is reiterating its don’t sell notice to shareholders, saying an offer from Jevic New Zealand is opportunistic,

Jevic, a company that pre-vets imported used vehicles, has offered to buy all the shares of VINZ at $1.65 each, valuing the target at $4.1 million.

VINZ chairman Ken Worsley said a report from an independent adviser and the board’s response to the offer were being reviewed by the Takeovers Panel.

“Once the Takeovers Panel has vetted these vital documents, we will dispatch them to shareholders,” he said.

This has to be done by January 23.

Worsley said VINZ had significant cash reserves that alone valued the company at $1.27 a share.

“It is the view of this board that the current Jevic offer is opportunistic in that it takes advantage of perceived uncertainty caused by the current vehicle licensing review process,” he said.

The offer represents a 10 percent premium to VINZ’s last trading price of $1.50.

Prior to the offer Jevic and associated parties had already acquired about 18.5 percent of the company.

The government is reviewing the whole system of annual vehicle registrations, WOFs, COFs and transport service licensing with a view to lifting efficiency while cutting costs.

That could have a detrimental impact on VINZ’s business. One option is to extend frequency periods for warrants and other services, which VINZ said in its annual report in August would reduce the market size, prompting the company to put any expansion plans on hold.

The Jevic group is the country’s largest biosecurity vehicle inspectorate with about 85 percent of that market.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news