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

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news