French firm lodges £425m bid for Lavendon
A French rental equipment giant looks set to win the battle for control of Leicestershire-based rival Lavendon after the boards of both companies announced that they will recommend a £425m takeover deal to Lavendon’s shareholders.
The deal would represent a return of 250p per share.
The news comes just hours after a Belgian materials handling firm which has spent much of the week trying to complete its takeover of Leicestershire-based Lavendon has upped its bid.
TVH – a major player in the materials handling market – had said it would pay 230p for a Lavendon share – up from 180p when the bid was revealed in September.
The new offer valued Lavendon at £391m and was the latest twist in a relatively lengthy bid for the rental powered access firm.
TVH approached the Board of Lavendon in September 2016 regarding a possible offer with an offer of 180 pence in cash per Lavendon share. Following negotiations with Lavendon, TVH increased the proposal to a price of 200 pence in cash per Lavendon share.
On 14 November 2016 TVH indicated to Lavendon that it intended to increase the possible offer price to 205 pence in cash per Lavendon share.
On 16 November 2016, the Board of Lavendon informed TVH that, in light of further discussions with certain shareholders, Lavendon had unanimously concluded that it no longer intended to recommend an offer whether at 200 pence or 205 pence in cash per Lavendon share.
On 18 November 2016, having considered the response of the Board of Lavendon, TVH proposed changing the offer structure from a scheme of arrangement to a contractual offer. The Board of Lavendon met to consider the revised proposal over the weekend of 19 November 2016 and subsequently informed TVH that it would only be prepared to recommend such an offer if TVH secured the support of more shareholders.
So far TVH has only managed to buy 5.4% of Lavendon shares, despite the Lavendon board advising shareholders not to accept 205p per share earlier this week.
However, a statement released yesterday (Thursday 15th December) by Loxam after the increased offer by TVH said: “The Board of Loxam notes the announcement issued earlier today by TVH of a revised cash offer for the entire issued and to be issued share capital of Lavendon.
“Loxam is considering its options and urges Lavendon Shareholders to take no action in support of the offer announced by TVH.”
TVH said this morning that it is “considering its options” in light of the new offer from Loxam.
