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Lavendon Group rejects £348m takeover, shares fly high

Staff Writer | November 22, 2016
Shares in Lavendon Group soared nearly 40% as the rental company rejected a £348 million offer from Belgian industrial equipment supplier TVH Group.
Acquisition   Lavendon is in robust health
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 Group 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".