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

 


VINZ Board unanimously recommends shareholders reject offer


FOR IMMEDIATE RELEASE


VINZ Board unanimously recommends shareholders reject JEVIC takeover offer; says share price offer is “inadequate”

Independent Adviser’s Report says JEVIC offer price undervalued


AUCKLAND, 22 January 2013 - Vehicle Inspection New Zealand Ltd (VINZ) announced that its Board has unanimously recommended to shareholders that they do not accept the recent takeover offer from JEVIC NZ Ltd because it is “inadequate”.

In a letter sent to shareholders today, Ken Worsley, Chairman of the VINZ Board, says an Independent Adviser’s Report that the Board received this week has assessed that the underlying value of the Company’s shares is in the range of $1.77 to $3.70 per share under various scenarios based on the future regulatory environment.

“JEVIC’s offer of $1.65 per share is therefore below the valuation range,” says Mr Worsley.

“While it is for individual shareholders to make their own decisions as to whether or not they agree with the assumptions and conclusions in the independent adviser’s report, or the opinions of the directors, it is our view that the offer price is inadequate,” he says.

“However, we suggest shareholders carefully read the report and the target company statement that we sent to them today and consult with their own advisers to make an informed decision on the merits of the Offer, taking into account their own personal position.”

The VINZ Board has included in their letter to shareholders a list of six key reasons why they reject the JEVIC share price offer. Among these, says Worsley, is the Board’s view that the price does not reflect the consistent dividend payments of 15 cents per share which have been paid in recent years and in the normal course would be payable this year.

He also reminded shareholders that $1.27 per share is currently represented by cash reserves and the additional 38 cents per share is a token supplement for the other assets and established infrastructure of VINZ.

Worsley says another reason is because it’s possible that there will be another offer for VINZ in competition with the JEVIC offer.

Mr Worsley says the VINZ directors also recommend that if shareholders do decide to sell their VINZ shares to JEVIC, they should at least wait until the last few days before the offer closes on 13 February.

“There is no advantage in accepting early, as you will not be able to withdraw your acceptance and take a better offer from another party should one emerge during the Offer period,” says Mr Worsley.

A copy of the VINZ Target Company Statement and the Independent Adviser’s Report by Simmons Corporate Finance Limited can be downloaded from the VINZ web site: http://www.vinz.co.nz

- ENDS -

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news