27.01.2017

TVH ends bidding war

TVH has issued a statement staying that its last offer for Lavendon shares of £2.61 per share is its final offer. This leaves Loxam with the winning - or rather the highest- bid at £2.70. See Loxam breaks cover

TVH has not yet stated whether it has received any further takes for its offer, which might add to its holding of 20.4 percent. It is now likely that shareholders interested in selling will now accept the Loxam offer. Loxam has said that it will go ahead with the deal as long as it receives acceptances from over 50 percent of the equity.

If TVH decided to hold its stake for now that might be a challenge? If others decide to stay invested. We would except the deal to accelerate over the next few days so watch this space.

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Shortly after TVH made its statement Lavendon acknowledged the news and issued the following statement.

“The Lavendon directors believe Loxam's offer reflects both the quality of the business and its position in its selected markets. Loxam is a credible counterparty with a strong track record in the European construction equipment rental industry. Its general plant and rental activities fit well with the more specialised business of Lavendon and there is a compelling strategic rationale to a combination.”

“Although the Lavendon directors believe the Lavendon Group has a strong future as an independent business, the premium and deliverability within the Loxam offer places value on Lavendon's prospects and provides certainty, in cash, to shareholders today as against the inherent uncertainty of the delivery of future value that exists in any business.”

Lavendon chairman John Standen added: "As our recent full year trading update demonstrated, Lavendon is a company in robust health, uniquely positioned across diverse geographic markets, with strong revenue growth, cash flow and return on capital. Loxam has recognised the inherent value in our business and we believe that its all-cash offer provides our shareholders with an opportunity to realise significant value at an attractive premium to the pre-offer period share price, whilst securing early delivery of Lavendon's potential against a backdrop of macroeconomic uncertainty.”

“In reaching its decision, the board has considered in great detail the best interests of all shareholders and the company as a whole. Loxam is the largest equipment rental company in Europe with a strong management team that shares our belief in the strengths of our people and our growth drivers. We are confident that Loxam is the right partner to take Lavendon to the next chapter of its growth story."

Loxam president Gerard Deprez said: "Throughout this process, we have reaffirmed our belief on the benefits of combining our strong and complimentary businesses and have been delighted to receive the recommendation of the Lavendon board at each stage. We believe the transaction will anchor Loxam as one of the leading worldwide access equipment rental companies, will reinforce
Loxam's leadership in the European equipment rental market and represents a unique opportunity to increase its scale and business profile. We look forward to working with the highly skilled Lavendon team to further build up the combined business."