Belgian materials handling firm TVH Group is making a £348m bid for Leicestershire rental powered access firm Lavendon.
The TVH Group wants to buy the firm to target its Middle East markets. It is the second time TVH has bid for Lavendon following an approach back in 2011.
Pascal Vanhalst, member of the executive board of TVH, said: “The acquisition of Lavendon would represent a significant step forward in the growth of our specialised rental activities.
“It would also bolster our geographical expansion strategy as TVH Equipment would become active in new markets such as the UK, the Middle East and France. With Lavendon’s vast rental know-how and focus on safety, the customers of the enlarged group would clearly benefit.
He added: “Our strong preference has always been to announce an offer with the full support of the board of Lavendon.
“TVH, Lavendon and our respective advisers worked together towards a firm offer announcement at a price of 200 pence per share in cash, which the board of Lavendon intended to recommend. Following discussions with certain shareholders, we increased our proposed offer price to 205 pence in cash.
“Despite the increase, the board of Lavendon withdrew its support on the grounds of concerns around deliverability of a scheme of arrangement. To address the Board’s concerns and secure its support, TVH proposed changing the structure to a contractual offer, however the Board of Lavendon continued to be unwilling to recommend the offer.
“TVH believes the offer fully values the company and its prospects and has therefore decided to release this firm offer announcement to allow Lavendon shareholders to decide on the merits of the offer.”
The board of Lavendon has advised shareholders to take no action.
Don Kenny, Lavendon’s Chief Executive, said: “The board is encouraged by the trading performance to date, and as a consequence of the favourable translational impact on our overseas earnings from the continuing weakness of Sterling, we expect the Group’s results to be marginally ahead of our original expectations for 2016.”
from Construction Enquirer http://www.constructionenquirer.com/2016/11/22/belgian-firm-launches-348m-hostile-bid-for-lavendon/
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