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

 


Jevic ups VINZ offer, government policy affects valuation

Jevic ups VINZ offer, government policy affects valuation

Jan 25 (BusinessDesk) - Vehicle inspectors Jevic New Zealand has upped its offer for all the shares of Vehicle Inspection New Zealand (VINZ) to a level that has won approval of directors who can’t see a competing offer eventuating.

Jevic has increased its offer to $2.15 a share from the $1.65 a share, valuing VINZ at $5.4 million.

The new offer is being unanimously recommended by directors who are accepting it on behalf of their own holdings.

Chairman Ken Worsley said $2.15 a share was a fair price in the current extremely uncertain regulatory environment for companies that pre-vet imported used vehicles.

“The increase of 50 cents per share is a significant improvement over the original price offered,” he said.

The price is close to the middle of a range in the report of independent adviser Simmons Corporate Finance.

But the report ascribes an extremely wide range of valuations depending on possible changes to government policy relating to warrants of fitness, certificates of fitness, and vehicle registration.

The report values VINZ at between $3.26 to $3.70 per share if the status quo continues, but says this is an optimistic position.

Under a scenario of only changes to policy on warrants of fitness, the value range is $2.27 to $2.55 per share and under a wider range of policy changes the value drops to between $1.77 and $1.93 per share.

VINZ’s shares are traded on the unregulated Unlisted securities trading facility. The company had a market capitalisation of $3.8 million as at January 18.

Its unaudited total equity was $5.1 million as at December 31, 2012.

Jevic has lockup agreements with four shareholders and who own about 18.5 percent of VINZ.

Among VINZ’s services is the completion of vehicle entry certification for the NZ Transport Agency and it currently has about 40 percent of that work.

The Jevic group provides pre-shipment inspections in Japan and the UK and says it is the country’s largest biosecurity vehicle inspectorate with about 85 percent of that market.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news