28.11.2016

Loxam may bid for Lavendon

Loxam has joined the bidding for UK based Lavendon group with a preliminary approach regarding a possible cash offer.

The statement issued this morning said: “Discussions with Lavendon are ongoing and there can be no certainty that any offer will be made, nor as to the terms of any such offer. Loxam urges Lavendon shareholders not to take any action in support of the offer announced by TVH Group N.V. on 22 November 2016. A further announcement will be made in due course.”

Lavendon responded to the announcement as follows: “The Lavendon board notes the announcement made by Loxam earlier today with regards to its possible interest in a cash offer for Lavendon. The Board continues to advise shareholders to take no action at this stage.”

“This announcement has not been made with the agreement or approval of Loxam and there can be no certainty that an offer will be made nor as to the terms on which any offer might be made. Under Rule 2.6(d) of the City Code on Takeovers and Mergers, Loxam must by 5.00pm on the 53rd day following the publication of TVH’s initial offer document either announce a firm intention to make an offer to Lavendon or announce that it does not intend to make an offer for Lavendon. A further announcement will be made if and when appropriate.”
To follow this story click here to see TVH acquires stake in Lavendon

Vertikal Comment

This is not entirely surprising, whether Loxam does go ahead is far from certain, what it does do at a stoke is give TVH a ‘facesaver’ to raise its bid for Lavendon – given that its statement that it would not raise its offer carried the caveat “unless a third party made an offer to the company”.

It is certainly looking increasingly likely that Lavendon will be acquired this time, and most likely by TVH. However this is far from certain.