Lavendon directors recommends Loxam offer over TVH

14th Dec 2016 09:15

(ShareCast News) - Lavendon has agreed to be taken over by equipment rental group Loxam at a price of 220p in cash, valuing the aerial work platforms specialist at rouhgly £374m. Lavendon's directors will recommend the offer, which is at a 58.3% premium to the closing price on 21 November when the potential deal was first mooted, to shareholders over the hostile bid from Belgium's TVH, which now owns around 9% of its shares and has already received clearance from the German competition authority.Lavendon chairman John Standen said the board had made its recommendation after considering the best interests of all shareholders and the company as a whole."We believe that Loxam's all-cash offer provides Lavendon's shareholders with an opportunity to realise significant value at an attractive premium to the pre-offer period share price, whilst securing early delivery of the Lavendon Group's potential against a backdrop of increased economic uncertainty. This is why the Lavendon directors unanimously intend to recommend Loxam's offer."Loxam is the largest equipment rental company in Europe with a strong management team who share our belief in the strengths of our people and our growth drivers. We are confident that they are the right partner to take Lavendon to the next chapter of its growth story." In light of various aspects of Loxam's offer, including valuation, transaction timing and execution risk, Lavendon considered it represented superior value for shareholders compared to the offer from TVH. "Although the Lavendon Directors believe the Lavendon Group has a strong future as an independent business, the premium within the Loxam Offer places value on the Lavendon Group's prospects and provides certainty, in cash, to Lavendon shareholders today as against the inherent uncertainty of the delivery of future value that exists in any business."