The Vinz testing station in Andersons Bay. Photo by Linda
Jevic NZ Ltd has upped the ante in its takeover play for
Vehicle Inspection New Zealand Ltd (Vinz) - boosting its
original offer 30% to $2.15 per share - or $5.37 million.
The new offer, rising from $1.65 to $2.15, was enough to turn
around Vinz directors who are now urging shareholders to
accept the revised offer. The five directors have signalled
they will all sell their collective 9.56% stake.
In seeking a 100% takeover, Jevic has already gained 24.28%
earlier acceptances from shareholders, including five of the
10 largest shareholders.
The $2.15 offer, which sits between two of three valuation
ranges, values Vinz at $5.37 million and offers a 43% premium
on the last trading price of $1.50 per share, before the
original offer on January 9.
Jevic, part of the global Japan Export Vehicle Inspection
Centre group, has tested more than 500,000 vehicles before
their entry into New Zealand, since 2001.
Vinz has more than 150 qualified inspectors, technicians and
support staff spread across 10 outlets from Dunedin to
Mangere, in Auckland. Its shares trade on the Unlisted
Craigs Investment Partners broker, Peter McIntyre, said
between the 30% rise and the directors' unanimous
endorsement, it would likely ''be enough to get the takeover
across the line''.
While seeking 100%, Jevic has said the offer is conditional
on gaining a minimum 50% acceptances. The offer will not be
extended beyond the original February 13 closing date.`This
is a case where, if Jevic is really keen, they have got to
'fess-up and buy,'' [within the independent report range] Mr
Vinz board chairman Ken Worsley, said the directors
unanimously supported the revised, increased offer and
recommended yesterday that shareholders ''accept without
''The increase of 50c per share is a significant improvement
over the original price offered,'' he said.
The directors changed their previous recommendation because
they believed that the $2.15-per-share offer is a fair price
for the Vinz shares in the ''current extremely uncertain
The Government is reviewing vehicle inspection regulations
which, in their extreme form, could result in cars being
checked less often for warrant of fitness than the present
Mr McIntyre said Jevic would have considered the potential
impact of regulation changes, and has said it was comfortable
with annual forecast budgets and forecasts, through to 2015.
Jevic said it had received assurances from the New Zealand
Transport Agency that contracts it had with Vinz would not be
affected by the takeover.