26.11.2016
TVH acquires Lavendon stake
TVH has acquired a nine percent stake in UK based international rental group Lavendon and now has agreement on almost 17 percent of the shares.
Some of the shares acquired came from GVQ Investment Funds (Dublin) which had already pledged its shares to TVH, this acquisition takes the number of shares it controls from 12.3 to 16.9 percent. It has so far paid an average of 202 pence, while its offer remains at 205 pence. The share price closed at 204.25 pence last night.
TVH had initially said that it will only make a final bid if it receives untertakings form at least 75 percent of shareholders. Although now it reserves the right to change this to anything over 50 percent, which would give it control but not full ownership. It has also confirmed that the Offer is final and will not be increased, Unless…… a third party makes a counter bid before its offer expires.
Click here to see Lavendon rejects TVH bid
Click here to see TVH bids for Lavendon
Vertikal Comment
There has enormous activity this week as significant shareholders have been registering interests and positions. Meanwhile the share price as settled close to the offer price, a sure sign that a good number of speculators feel that there is a real chance that the bid will be successful. It is not always so, but certainly another indicator.
What we do not know is the number of shares that are firm in their conviction not to sell at this price, given the way that Lavendon seemed prepared to recommend the offer and then rejected it, one has to assume that the number of institutions backing rejection is significant. Pascal Vanhalst of TVH is consummate deal maker and does not give up easily.
This bid could go either way, but what could shake it massively is the intervention of a third party, such as United Rentals for example. One is certain the UK rental market is in a state of flux with some massive opportunities for the brave. There is still no news for example on Hewdens 140 unit crane fleet or 900 odd telehandlers.
Interesting times.
Mike Smith
An interesting offer especially when there are so many UK and US rental companies offering their businesses for sale both in public and as undisclosed sales.