Press Release – Vehicle Inspection New Zealand
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 …
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.
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.