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

 

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news