LONDON (Alliance News) - Belgian company TVH Group NV said Thursday it has made an increased cash offer for London-listed equipment rental firm Lavendon Group PLC, having been outbid by French company Loxam SAS earlier in the week.
TVH said it has increased its cash offer to 230.00 pence a share, from the original 205p offer it made in September, which Lavendon rejected. The new offer values Lavendon at approximately GBP391.0 million.
The offer is higher than the 220.00p a share offer made by Loxam, which the Lavendon board recommended to shareholders on Wednesday. In a statement later on Thursday, Loxam said it was "considering its options" after the higher TVH offer was made. It urged Lavendon shareholders to take no action in regard to the new TVH offer.
Shares in Lavendon were up 4.2% at 241.00p Thursday afternoon.
TVH also said it has acquired a further 9.2 million shares in Lavendon, a stake of approximately 5.4%. TVH said the purchases leaves it owning approximately 14.5% of Lavendon shares, and that it is seeking to acquire more shares.
Including TVH's own holding in Lavendon, the Belgian firm said it has either acquired or received irrevocable undertakings to accept its increased offer in respect to approximately 20% of Lavendon shares.
TVH had previously announced it has lowered the acceptance condition of its takeover offer to 50% plus one share.
Lavendon noted TVH's increased offer and share purchase later on Thursday afternoon and advised its shareholders to take no action. It said it will make a further announcement on the issue in due course.
By Adam Clark; adamclark@alliancenews.com
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