New director at 2 Cheap Cars
The former chairman of Veritas Investments, now known as Good Spirits Hospitality, has joined NZ Automotive Investments (NZAI) as an independent director.
The appointment of Tim Cook follows company chairman Karl Smith and independent director Michele Kernahan resigning earlier this month.
Kernahan’s resignation was effective from April 8 with Smith’s taking effect when a replacement independent director was appointed.
Director Charles Bolt has since taken over as interim chairman of NZAI, which owns 2 Cheap Cars.
Smith joined NZAI’s board in September 2020 ahead of its direct listing on the NZX’s main board in February 2021. Kernahan became a director on listing.
Bolt says the company is delighted Cook has accepted a position on the board given his breadth of experience across a range of sectors.
Cook, pictured, was a director and then chairman of Auckland City BMW, Mini and Rolls-Royce between 2008 and 2015.
He was previously an independent director of NZX-listed companies. These included Charlie’s Group before Asahi’s takeover in 2011, Plexure and Good Spirits Hospitality.
He holds many other directorships and is currently chairman of Medsector Advisers, The Heart Group and MyWave.AI.
Cook says: “This is an exciting time to join NZAI as the country starts to emerge from Covid-19 and the opportunities that will present.
“Despite pressure on stock supply and increased retail-financing costs, NZAI is well-positioned to capitalise on the opportunities ahead.
“I look forward to working with the board and senior management to develop innovative strategies to enhance performance, growth and market share.”
Cook’s appointment means Smith’s resignation became effective on April 22.
Earlier this month, NZAI said Smith believed it was the right time to step down having guided the company from private to public ownership. He was also focusing on expanded roles as director of VetNZ and chairman of FortHill property.
Kernahan was reported to be rationalising her governance commitments and had a new executive leadership role starting next week. She was also appointed as an independent director of Ballance Agri-Nutrients in late 2021.
In a statement to the NZX, the company said Cook and Kernahan had “worked extensively as members of the new board and with new management in transitioning the company from private ownership to publicly listed status via a direct NZX listing in February 2021”
Direct listing
NZAI operates 12 used-car dealerships, half of which are in Auckland.
As a direct listing, it didn’t issue any new securities. Its 45.5 million shares were priced at $1.30 each to value it at just over $59m.
Since then, the company’s share price has struggled. It closed at a new low of 78 cents on April 21.
Co-founder Eugene Williams sold $3.9m of shares in September in a bid to increase engagement in the stock and its liquidity.
That sale was completed at an offer price of 93c a share, a 15 per cent discount to its last closing price at the time. Up to $5m had been offered. This represented about 10 per cent of NZAI’s total market capitalisation at the time.
