The Motor Trade Association have called a special meeting for next month to have members vote over a partial sale of Vehicle Testing New Zealand – a major player in the Certificate of Fitness market.
The deal values the company at $60 million – and after VTNZ debt is taken into account will see the association receive $26 million.
Its investment arm – MTA Group Investments – is seeking permission to partially sell of VTNZ’s parent Vehicle Testing Group Limited to German inspection giant DEKRA SE.
The sale is proposed for 60% of the company.
There had long been rumours in the trade about DEKRA’s interest in the operation – but this is the first confirmation.
The meeting will be held at Rydges Wellington, Grand Space, 75 Featherston Street, Wellington, on Friday, 20 September 2013 at 11.00am.
“The purpose of this meeting is to inform and seek members’ support regarding the sale of 60 percent of MGIL’s shareholding in Vehicle Testing Group Ltd to DEKRA SE,” president David Storey says in an alert to members over the meeting.
“The Board feels that it is important to gain member support on the way forward.”
The MTA board has already discussed the issue and recommended a resolution, being:
“That MTA members support the MTA Board’s resolution to approve the sale of 60 percent of MGIL’s shareholding in Vehicle Testing Group Ltd to DEKRA SE on the terms and conditions agreed between the parties.”
Storey says it is important members have their say.
“Given that the sale of shares in Vehicle Testing Group Ltd represents an important decision for MGIL, the MTA Board wishes as many members as possible to have their say,” Storey says. Because of this the board is allowing members to have an attorney represent them at the meeting, and have made power of attorney forms available.
MTA spokesperson Ian Stronach says they are unwilling to comment further on the sale at this stage.
