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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news