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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news