Vehicle inspection firm launches VINZ bid
Multinational vehicle inspection company JEVIC intends to set up shop inside New Zealand's borders by making a $4.1 million takeover bid for local inspector Vehicle Inspection New Zealand (VINZ).
JEVIC New Zealand, which is part of the global Japan Export Vehicle Inspection Center group, has offered $1.65 a share for 100 per cent of the stock of VINZ.
VINZ is listed on the Unlisted trading platform.
The company said it had already acquired 18.5 per cent of VINZ's shares in the past six months, and its offer was dependent on receiving at least 50 per cent of the company's shares as well as other conditions.
JEVIC NZ said it intended to retain VINZ's current general manager.
VINZ says it employs over 150 qualified inspectors, technicians and support staff at testing stations throughout the country.
The company inspects, tests, and certifies new and used vehicles to meet Warrant of Fitness and Certificate of Fitness standards as well as performing vehicle appraisals and inspections, exhaust emission testing, driver and vehicle licensing, and road user charge collection.
VINZ says it completes entry certification on the New Zealand Transport Agency's behalf for approximately 40 per cent of vehicles entering the New Zealand fleet.
JEVIC also inspects vehicles but carries out the checks before the imports cross New Zealand's borders.
The private company is based in Japan with branch offices in Singapore, the United Kingdom, South Africa and Kenya, in addition to New Zealand.
The company says it carries out the pre-shipment inspection of 55,000 vehicles entering New Zealand each year, and has around 85 per cent of the biosecurity vehicle inspectorate market share.
It has held contracts to provide inspection services to New Zealand government agencies and leading vehicle importers since 2001.
"Our intention is to establish an inspection capability within New Zealand," says JEVIC NZ chief executive Euan Philpot.
"We believe the inspection environment will be a challenging one if new regulations take effect, and that the time is right for consolidation. This takeover offer provides certainty to VINZ shareholders.
"Our offer provides VINZ shareholders with an attractive, certain and immediately realisable proposition.
"Also, it is a less risky proposition for shareholders in that they know exactly how much they can receive for their holdings and will not be waiting on the company's adaption to a new regulatory environment," Philpot said.
The offer will be sent to shareholders in early January 2013 and will remain open for 35 days.
- © Fairfax NZ News