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


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:

- ENDS -

© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news