LONDON (Alliance News) - Equipment rental company Lavendon Group PLC said Wednesday it is recommending an improved takeover offer from French firm Loxam SAS after it outbid rival suitor TVH Group NV of Belgium.
Lavendon is the Europe and Middle East leader in powered access equipment, which includes equipment like scissor lifts and truck mounts. Its lifts are used to erect the famous Christmas lights display on London's Regent Street.
Industrial equipment rental company Loxam has made a 270.00 pence per share cash offer for Lavendon, valuing the company at GBP459.0 million.
The price trumps the latest 261.00p per share offer from TVH, an industrial equipment firm which supplies forklift trucks, aerial work platforms and agricultural tractors.
Lavendon said it is recommending Loxam's latest offer, which comes at a 94% premium to Lavendon's closing price on November 21, 2016, before the first bid for the company was revealed.
That first bid was made at 205p a share by TVH in September 2016, but was rejected and only revealed by Lavondon in November. A bidding war between TVH and Loxam has subsequently driven up the asking price, but the French firm has received Lavendon's consistent support.
Loxam noted its latest offer has won an irrevocable undertaking from M&G Investment Management to accept the bid, representing 18.6% of Lavendon shares. Added to commitments from Lavendon's own directors, Loxam currently has irrevocable undertakings to accept its offer for 19.2% of Lavendon's share capital.
Loxam also noted it has waived the acceptance condition of Lavendon shareholder support for its offer down to 50% plus one share, from 75%.
In response to Loxam's increased offer, TVH said it is considering its options and urged Lavendon shareholders to take no action.
However, Lavendon subsequently issued an announcement declaring its support for Loxam's offer and urged shareholders to take no action in response to TVH's latest bid.
Shares in Lavendon were up 3.7% at 275.00p Wednesday morning, suggesting shareholders anticipate another round of bidding from the firm's suitors.
By Adam Clark; adamclark@alliancenews.com
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