TVH has made a final cash offer of 205p per share for Lavendon. The offer, which has been made by TVH's wholly-owned subsidiary Libra Bidco, values Lavendon at approximately £348 million.
The offer represents a premium of approximately 57.4% to the closing price of 130.3 pence per Lavendon share on 16 September, the last business day before TVH approached the board of Lavendon and 47.5% to last night's closing price of 139.0 pence.
Lavendon said the board it received an unsolicited approach from TVH after Lavendon's half year results in August.
Lavendon said: "Following preliminary discussions, a non-binding proposal was received on 16 October from TVH regarding a possible cash offer for Lavendon to be effected by way of a scheme of arrangement and subject to certain pre-conditions including a limited amount of due diligence and the support of Lavendon's major shareholders.
"Following further negotiations and once the limited due diligence was complete, TVH sought the support of Lavendon's major shareholders. Following discussions with these shareholders, TVH indicated that a price of 205 pence per Lavendon share was the maximum price it would be prepared to pay.
"Having consulted with certain of the shareholders approached by TVH, it was apparent that the level of support anticipated was not forthcoming. Consequently, the Board unanimously concluded that it was unable to proceed with a recommended offer, regardless of the proposed offer structure, due to concerns over the significant execution risk and the potential disruption to Lavendon's business. The Board subsequently encouraged TVH to approach additional shareholders to establish whether TVH could secure further support but they declined to do so."
A statement says: "Lavendon is in robust health, well positioned across diverse geographic markets, with strong revenue growth, profits, cash flow and ROCE and a clear strategic direction to deliver substantial shareholder value over the medium term."
At 9:55am: (LON:LVD) Lavendon Group PLC share price was +51.5p at 190.5p