JEVIC NZ’s takeover of Vehicle Inspection NZ has effectively been completed, with the company receiving 100% acceptance from shareholders.
JEVIC’s offer closed at 5.00pm last night. Shareholders will receive $2.15 for their shares, up from the $1.65 originally offered.
Payments will be made on February 21.
All other conditions, including an agreement for existing management to stay on and assurances that the sale would not negatively impact NZ Transport Agency contracts, have been fulfilled.
JEVIC NZ chief executive Euan Philpot is clearly pleased with the full acceptance.
“We are delighted to have secured acceptances from all shareholders for our increased offer,” says Philpot.
“That our offer received unanimous support shows we enjoy a high level of goodwill carried through the transaction.
“And it will help streamline the remainder of the offer process, as we do not need to compulsorily acquire any outstanding shares.”
Work has already begun on transitioning to the new control.
“We have already started working with the outgoing Board to ensure a smooth transition and we look forward to sitting down with VINZ’ senior management team to better understand the totality of VINZ business, function-by-function and location-by-location, and to identify potential synergies throughout the inspection supply chain,” Philpot says.
No OIO permission required
AutoTalk inquired of JEVIC NZ whether there is any potential need for Overseas Investment Office approval (OIO) for the transaction, and found it is not necessary.
Philpot told AutoTalk that despite its overseas ownership, JEVIC NZ is a long-trading New Zealand entity, which mitigates the need.
AutoTalk has checked requirements, and the more important mark is that the sale values VINZ at only $5.4 million – just a fraction of the $100 million mark required in a business investment to trigger OIO interest.
