17/9/2021, 8:30 am MKTUPDTE
16 September 2021
Company Announcement
NZX:NZA
NZ Automotive Investments Limited - Proposed Sell Down by NZA Founder to improve liquidity
NZ Automotive Investments Limited (NZX:NZA) has been advised that an existing substantial shareholder is completing a sell-down through a bookbuild process through selected retail brokers.
A trading halt is required to facilitate an orderly market for NZA securities while the book build takes place.
The size of the sell-down is up to $5.0m which is expected to represent approximately 10% of the total market capitalisation of NZA. If the placement is fully subscribed, NZA’s free float will increase from ~8% to 20%.
The founder’s decision is aligned to and facilitates the business strategy of increasing liquidity and broader engagement in the stock.
The offer is being made while NZA’s shares are in a trading halt, which is expected to remain in place until the earlier of:
• An announcement about the completion of the bookbuild; or
• Close of trading on Friday, 17 September 2021.
If fully subscribed the founder will remain a substantial shareholder in the NZA owning 34% of shares on issue following the sell-down.
For more information on the content of this announcement, please contact:
Haydn Marks
Chief Financial Officer
NZ Automotive Investments Limited
Haydn.m@nzautomotiveinvestments.co.nz
About NZ Automotive Investments Limited (NZAI)
NZAI is an integrated used automotive group operating throughout New Zealand via two subsidiaries: Automotive Retail and Vehicle Finance. NZAI’s mission is to deliver quality cars and financing solutions at the most affordable prices to the average New Zealander. Operating under the “2 Cheap Cars” brand, its Automotive Retail company is one of the largest used vehicle sellers in New Zealand with 12 dealerships across the country. Its Vehicle Finance company operates under the “NZ Motor Finance” brand. It was established in 2019 to diversify earnings and provide a further growth opportunity for NZAI. It originates loans entirely from cross-selling to Automotive Retail customers, which allows NZ Motor Finance to grow its finance book with minimal acquisition and administrative costs. www.nzautomotiveinvestments.co.nz