Vehicle Inspection New Zealand’s board has reiterated its ‘don’t sell’ notice to share holders – and in the process called the offer by JEVIC NZ for the firm ‘opportunistic’.
The Takeovers Panel is currently reviewing directors’ recommendations and the independent advisers’ report regarding the $1.65 a share bid.
Ken Worsley, chairman of the VINZ board, says that once the panel has vetted the documents, they will be released as soon as possible – under the process this must be no later than next Wednesday, January 23 – next Wednesday.
“It is critical that shareholders make an informed decision,” notes Worsley. “We strongly urge them to wait until they have read our full recommendations and the independent adviser’s report before they decide on the JEVIC offer.”
Worsley went on to imply that the offer undervalued the company, noting the company’s cash reserves alone value VINZ at a minimum of $1.27 per share, before considering other factors, which will be covered fully in the report and the board’s recommendations.
“It is the view of the board that the current JEVIC offer is opportunistic in that it takes advantage of perceived uncertainty caused by the current Vehicle Licensing Review process,” he says.
JEVIC NZ managing director Euan Philpot was unable to comment on Worsley’s statement, saying the takeover process is very structured, and Jevic is waiting for the independent advisers’ report to be released.
He was keen to remind shareholders that the offer closes on February 13.
Read our sister publication Autotalk’s interview with Euan Philpot HERE.
