22nd Nov 2016 08:49
LONDON (Alliance News) - Equipment rental firm Lavendon Group PLC on Tuesday revealed a takeover offer was made for the group in September by Belgian industrial equipment supplier TVH Group NV, but it failed to secure sufficient support from Lavendon shareholders.
TVH said it made a cash offer of 205.00 pence per share for Lavendon, valuing the UK business at GBP348.0 million. The offer was made at a 57% premium to Lavendon's closing price on September 16, the day before TVH first approached Lavendon's board.
Shares in the company were up 34% at 185.88p on Tuesday following the announcement, the first public disclosure of the takeover bid.
In its announcement Tuesday, TVH said it believed the combination of its equipment business with Lavendon would be "highly complementary" in terms of capabilities, regional presence, customers and suppliers.
Lavendon confirmed the approach was made but said TVH had failed to secure sufficient levels of support from the UK firm's shareholders for the deal. As a result, Lavendon said it would not able to proceed with recommending the offer.
Lavendon said it encouraged TVH to come back with a bigger offer, but TVH has declined to do so.
By Sam Unsted; [email protected]; @SamUAtAlliance
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