Loxam has increased its offer for a third time to acquire Lavendon group, this time to 270 pence per share, which would bring the value of the deal up £459 million (US$565 million).

It follows TVH’s latest bid of 261 pence on 3 January, one pence higher than Loxam’s previous offer towards the end of December.

Loxam has also received a commitment from Lavendon shareholders to accept its offer in respect of 18.6% of shares, which will remain binding unless a competing offer at least 4% higher comes from a third party, or this latest offer lapses.

In addition, directors of Lavendon Group, who own shares, have shown their support with a commitment to sell their shares to Loxam, representing 0.55% of shares. In total, Loxam now owns or has been promised 19.3% of Lavendon shares.

In a further attempt to close the deal, Loxam says it will now be prepared to accept ownership of 50%, plus one share, whereas before the offer was subject to it owning 75% of shares. Rothschild and Deutsche Bank, Loxam’s financial advisors, have confirmed that sufficient resources are available to acquire the shares in full.

The break-fee agreement in which Lavendon has agreed to pay Loxam £3.7 million in the event that the offer is withdrawn, lapses or a third party offer is accepted, remains in place.

TVH Group said it is considering its options and urged Lavendon shareholders to take no action in response to Loxam’s latest offer.

In an immediate reply to TVH, Lavendon said, “The board of Lavendon unanimously intends to recommend that Lavendon shareholders accept this increased Loxam offer.” It also advised its shareholders take no action regarding TVH’s offer on 3 January.

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