Vehicle Inspection New Zealand has rejected a $4 million takeover bid telling shareholders the offer is too low, and says a rival bid may emerge.
Multinational vehicle inspection company JevicNew Zealand is offering $1.65 a share for VINZ, an unlisted company on the Unlisted trading platform with more than 100 shareholders, many of who are connected to the motor industry
VINZ chairman Ken Worsley says an appraisal report assessed its shares as worth between $1.77 and $3.70, depending on potential changes to vehicle testing the Government is considering, and Jevic's offer is inadequate. He also says a rival bid may emerge.
Jevic says it will review the appraisal report before responding.
Chief executive Euan Philpott says one of its conditions has been met, with VINZ general manager Frank Willett saying he'll stay on if Jevic's offer is successful.
Mr Philpott says it has acceptances giving it a 21.5% stake in VINZ.
Japan-based Jevic, is a privately-owned global vehicle inspection group, and has been operating in New Zealand since 2001, providing vehicle inspection and border compliance services.
It inspects and manages the pre-shipment inspection of 55-thousand vehicles coming into New Zealand each year, contracting to government agencies and vehicle importers.