Loxam has increased its offer for the 100% acquisition of Lavendon Group to 250 pence per share, with the boards of both companies agreeing on the figure in principle.
The offer would bring the value of the sale to £425 million, and follows an offer from Loxam earlier this week of 220 pence per share. Yesterday TVH Group, which has also been bidding for Lavendon, upped its cash offer to 230 pence per share.
Lavendon followed Loxam’s latest offer by recommending it to its shareholders, “The board of Lavendon unanimously intend to recommend that Lavendon shareholders accept the increased Loxam offer and therefore continue to advise that shareholders take no action with regard to the offer from TVH.”
The offer from Loxam is 79.9% above the closing price of 139 pence for each Lavendon Share on 21 November - the last business day prior to the start of the offer period. Loxam also confirmed that its bank had increased the available credit to make the purchase possible.
Loxam’s statement added that Lavendon had agreed to increase its break fee to £4,200,000, payable to Loxam should Lavendon directors withdraw or adversely change the recommendation of the increased offer, or accept an offer from a third party.
Earlier today TVH said it is considering its options and urged Lavendon shareholders to take no action in response to the increased offer from Loxam.