TVH raises its offer for Lavendon

TVH Group has increased its offer for Lavendon Group and confirmed that it has bought, or been promised shares that will bring its ownership of the company to 24.4%.

The increased offer to 230 pence per share, values the share capital of Lavendon at £391 million and represents an increase of 65.5% over the closing price of 139 pence on the last business day, 21 November, before the start of the offer period.

This week Lavendon announced it and Loxam had reached an agreement on a deal that would see Loxam acquire Lavendon for a cash price of 220 pence per share, valuing the business at £374.0 million.

Today, TVH Group also announced that it has acquired a further 5.4% of Lavendon shares at 230 pence each. Aggregated with the shares it acquired on 25 November, the company now owns 14.5% of Lavendon. TVH said it has also been given the option to buy a further 5.9%, which would bring the total to 20.4%.

Following the revised offer from TVH Loxam said it is considering its options and urged Lavendon shareholders to take no action in support of it. In response Lavendon Group also advised its shareholders to take no action and added that further announcements would be issued in due course.