MTA Successful Bidder For VTNZ
The MTA is pleased to confirm that it has been selected as the successful bidder for VTNZ. The acquisition price is $19.2 million. Settlement will take place by the end of September.
The country's largest association within the Motor Industry has been successful in its acquisition of the Crown-owned vehicle testing enterprise, Vehicle Testing New Zealand Limited (VTNZ).
The Motor Trade Association (Inc) (MTA) has a membership of approximately 5,000, including automotive repairers, specialist repairers, service stations and convenience store operators, licensed motor vehicle dealers and corporations that operate in the motor industry.
"We see the acquisition of Vehicle Testing New Zealand as an excellent opportunity for the MTA" says MTA President Trish Campbell. "This purchase is the most significant transaction for the MTA in its 82 year history."
The Association held a Special General Meeting on 31 August where members voted in favour of MTA proceeding to bid. 87% of members supported this action.
"VTNZ is a successful company in its own right. We see it as an excellent investment which will give us a higher rate of return than our traditional investments," says Trish Campbell.
"In the short term, we will be working closely with VTNZ management to better understand their business. The MTA Board does not envisage any significant changes during this time - it will be business as usual."
"Our goal is to grow this company. Basically, the better the company performs, the more dividends can be generated and diverted back to our members in services - services such as training which will improve their own business success", says Campbell.
"We are currently considering appointments to the new VTNZ Board and are excited by this new initiative. The MTA Board and Management Team look forward to a long, healthy and rewarding relationship with VTNZ."