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

 


VINZ Board recommends shareholders accept new share price

FOR IMMEDIATE RELEASE


VINZ Board recommends shareholders accept new share price offer from JEVIC NZ Ltd

Discussions result in JEVIC takeover offer increase from $1.65 to $2.15 per share


AUCKLAND, 25 January 2013 – Vehicle Inspection New Zealand Ltd (VINZ) announced today that as a result of discussions with JEVIC NZ Ltd, JEVIC has increased its takeover offer from $1.65 per share to $2.15 per share.

Ken Worsley, Chairman of the VINZ Board, says the Directors unanimously support the JEVIC offer at the increased price and recommend that shareholders accept without further delay.

Mr Worsley says the directors changed their previous recommendation because they believe that the new $2.15 per share offer is fair price for the VINZ shares in the current extremely uncertain regulatory environment.

“The increase of 50 cents per share is a significant improvement over the original price offered. It reflects a fair value for the VINZ business above the value of the cash reserves of the company, which are held primarily to hedge against costs which may arise from any restructuring necessitated by the Vehicle Licensing Review,” says Worsley.

“The new price brings the offer within the value range specified in the report of independent adviser Simmons Corporate Finance. The price is close to the middle price range referred to in the report.”

Mr Worsley says the new price also represents a healthy premium over the price at which the VINZ shares have historically traded on Unlisted, and enables shareholders to realise a much better price for their shares than would otherwise be the case.

He also says the possible competing offer the directors have previously referred to has not eventuated and does not appear likely to do so at this stage.

“The directors will all be accepting the revised offer in respect of the shares in which they have an interest,” says Mr Worsley.

About VINZ
As part of a long term partnership with Government via the New Zealand Transport Agency (NZTA), VINZ inspects, tests, and certifies new and used vehicles to ensure they comply with safety and environmental protection regulations. The company’s services meet the needs of an essential and permanent part of road transport legislation, including Warrant of Fitness (WOF) and Certificate of Fitness testing (COF for commercial vehicles), vehicle appraisals and inspections, exhaust emission testing, driver and vehicle licensing, and road user charge collection.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news