Jevic sweetens VINZ offer, govt policy affects valuation

Vehicle inspectors Jevic New Zealand has upped its offer for all the shares of Vehicle Inspection New Zealand to a level that has won approval of directors, who cannot see a competing offer eventuating.

Jevic has increased its offer to $2.15 a share from the $1.65 a share, valuing VINZ at $5.4 million.

The new offer is being unanimously recommended by directors, who are accepting it on behalf of their own holdings.

Chairman Ken Worsley says $2.15 a share was a fair price in the current extremely uncertain regulatory environment for companies that pre-vet imported used vehicles.

"The increase of 50 cents per share is a significant improvement over the original price offered."

The price is close to the middle of a range in the report of independent adviser Simmons Corporate Finance.

But the report ascribes an extremely wide range of valuations, depending on possible changes to government policy relating to warrants of fitness, certificates of fitness and vehicle registration.

The report values VINZ at between $3.26 to $3.70 per share if the status quo continues, but says this is an optimistic position.

Under a scenario of only changes to policy on warrants of fitness, the value range is $2.27 to $2.55 per share and under a wider range of policy changes the value drops to between $1.77 and $1.93 per share.

VINZ's shares are traded on the unregulated Unlisted securities trading facility. The company had a market capitalisation of $3.8 million as at January 18.

Its unaudited total equity was $5.1 million as at December 31, 2012.

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 currently 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.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7842 -0.0078 -0.98%
AUD 0.8914 -0.0023 -0.26%
EUR 0.6203 -0.0015 -0.24%
GBP 0.4896 -0.0010 -0.20%
HKD 6.0810 -0.0622 -1.01%
JPY 85.2860 -0.3520 -0.41%

Commods

Commodity Price Change Time
Gold Index 1229.0 2.000 2014-10-28T00:
Oil Brent 86.0 -0.650 2014-10-28T00:
Oil Nymex 81.4 0.410 2014-10-28T00:
Silver Index 17.2 0.065 2014-10-28T00:

Indices

Symbol Open High Last %
NZX 50 5338.3 5367.6 5338.3 0.33%
NASDAQ 4551.4 4564.4 4564.3 -0.33%
DAX 9139.0 9157.6 9068.2 0.16%
DJI 17005.1 17065.5 17005.8 -0.18%
FTSE 6402.2 6475.4 6402.2 0.81%
HKSE 23704.0 23855.7 23520.4 1.27%
NI225 15442.4 15595.3 15329.9 1.46%