Jevic NZ formalises offer for Vinz

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Vehicle Inspection New Zealand. Photo by Linda Robertson.

Jevic NZ Ltd yesterday formalised its cash offer for the shares of Vehicle Inspection New Zealand (Vinz) it does not own at $1.65 a share.

The offer opened yesterday and closes on February 13. The offer values Vinz at $4.13 million.

Jevic NZ, part of the global Japan Export Vehicle Inspection Centre group, indicated its intentions on December 11.

Jevic NZ chief executive Euan Philpot said yesterday that since 2001, Jevic had handled the inspections of more than 500,000 vehicles before their entry into New Zealand.

''Jevic NZ's intention in making this offer is to establish an inspection capability within New Zealand to complement our capacity in Japan.''

The company then would be able to offer, under a single umbrella, a tracked inspection service covering the vehicle's pre-shipment inspections in Japan to its certification for on-road use in New Zealand, he said.

The company intended retaining the current general manager of Vinz to ensure continuity of management.

The offer price of $1.65 represented a 10% premium on $1.50, the most recent price at which Vinz shares were sold on the Unlisted market.

In the past 12 months, Vinz shares had largely traded at prices between $1.40 and $1.55. The only exception was a parcel of 323,000 shares for which a party acting in concert with Jevic agreed to pay $2.50 a share on September 14. A premium was paid in order to acquire a strategic stake in Vinz, Mr Philpot said.

The premium on the offer price recognised that Vinz shareholders who had enjoyed receiving regular dividends would need to incentive to forego what had been to date a reliable income stream, he said.

Jevic controlled 18.4% of the total shares available. Although the offer was for 100% of shares on offer, Jevic might make the offer unconditional once it received acceptances representing more than 50% of Vinz total shares.

At a glance
• Jevic NZ is part of the global Japan Export Vehicle Inspection Centre group.
• Vinz, whose shares trade on the Unlisted trading platform, has more than 150 qualified inspectors, technicians and support staff.