Jevic succeeds in takeover of VINZ after raising its offer
Jevic New Zealand, the vehicle inspection firm, has won control of rival Vehicle Inspection New Zealand after upping its offer last month and winning support of the target's directors.
As of midday Jevic had received acceptances from holders of 95.8 percent of VINZ shares, meaning it can compulsorily acquire the rest when the offer closes on Wednesday.
Last month Jevic increased its offer to $2.15 a share from the $1.65 a share, valuing VINZ at $5.4 million. Directors of VINZ are selling their own holdings into the offer.
VINZ chairman Ken Worsley said last month that $2.15 a share was a fair price in the current extremely uncertain regulatory environment for companies that pre-vet imported used vehicles. The price is close to the middle of a range in the report of independent adviser Simmons Corporate Finance.
VINZ's shares are listed on the unregulated Unlisted securities trading facility, where they last traded at $1.50, valuing the company at $3.8 million. Jevic has lockup agreements with four shareholders 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 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.