Lavendon Group soars as it rejects £348m takeover

22nd Nov 2016 10:06

(ShareCast News) - Shares in Lavendon Group soared nearly 40% on Tuesday as the AIM-listed rental company rejected a £348m offer from Belgian industrial equipment supplier TVH Group.The company said that the level of support amongst its shareholders for the take-over was "not forthcoming" and it was unable to proceed with the offer as there were "concerns over the significant execution risk and the potential disruption" to the company.TVH had offered to buy the company for 205p per share after the company posted its half year results in August.It reported that interim revenue had increased 13% to £134.2m and that earnings before interest, tax, depreciation and amortisation (EBITDA) had risen 17% to £43.4m.The company maintained that it was "in robust health" and "well positioned across diverse geographic markets"It also said that it had strong revenue growth, profits, cash flow and return on capital employed and a "clear strategic direction to deliver substantial shareholder value over the medium term".Shares in Lavendon Group were up 37.17% to 190.67p at 1015 GMT.