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

 

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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