Turners rules out takeover of rival
Turners Automotive Group has dismissed the idea of taking over its embattled rival, NZ Automotive Investments (NZAI), but admits it had discussed such a move.
NZAI, the parent company of 2 Cheap Cars, has had a turbulent few weeks with four directors resigning en masse, its external auditor quitting and its bank deciding it cannot provide assurance of support for the company’s finance facilities beyond their current expiry dates.
The plight of the business was raised during the shareholder discussion section of Turners’ annual meeting, which was held in Auckland and online on August 17.
A shareholder asked the Turners board and executives: “Have you considered, or have you been tempted to consider, to give some assistance to one of our competitors, who’s in great turmoil at the moment?”
Grant Baker, pictured, chairman, replied: “No – short answer. We have discussed that, and we wouldn't see any advantage to us in doing that.”
After the meeting, Turners’ chief executive Todd Hunter told NBR the company was not considering making an offer for shares, or a takeover of NZAI, and was “comfortable” with its current business strategy.
