Lavendon Share Discussion Threads

[dr_smith] 24/11/2016 11:25

Thank-you Adam re "The buyer also now has their hands tied for 6 months"
I am aware there are rules to avoid offers over-whelming a co's ability to function, but can't help thinking there are alternative stategies for buyer...
or maybe PI's selling out is their stratagy - a hostile takeover?

I agree, there does seem more downside, so why would share price be holding up?

Could do with a write up by a legal person, giving the possibilities, in the same way we had permutations for Hamilton beating Rosberg.

[dr_smith] 24/11/2016 11:14

Lancasterbomber - Sounds sensible but bird hand gets near 0% interest - new bushes are hard to find. ;-)
..but then 0% is better than dropping by a whacking percentage.
..still holding, putting blind faith in that share price is holding despite board declining offer, so big boys/institutions must have info there is value to come..and I wonder whether buyer is hoovering up open market sells at circa 196.

Anyone with access (level 2 etc) to see if its agents for prospective buyer doing the buying.
I guess it is hard to tell as we all go through intermediary.

All IMO :-)

[lancasterbomber] 24/11/2016 10:56

Sold, just in case it falls through bird in the hand is worth 2 in the bush

[brucie5] 23/11/2016 21:19

paulypilot22 Nov '16 - 20:35 - 2158 of 2165 1 0
Cracking result - I've sold the lot, avg 194p, and banked a thwacking great profit!

PP.

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Thanks for your consistent positivity on this, Paul. I'm always interested in your reccies, though I bought in here primarily because the chart. A lucky result short term, but for value seekers, probably a skillful one.

[dingo_dollar] 23/11/2016 11:34

Sold yesterday. Circa 35% profit. My gut feel is it will fall through so looking to play the short.

[mfhmfh] 23/11/2016 10:38

thinking about hitting the sell button, taking 40% profit. No idea if there is another buyer lurking in the background.

[dr_smith] 23/11/2016 10:25

Mike - yep - that was my assumption on guessing what "significant execution risk" refers to.

[mikepompeyfan] 23/11/2016 10:16

I'm waiting to see what the lvd Board have to say apart from 'please don't sell or we'll lose our jobs'.

[dr_smith] 23/11/2016 10:11

For price to hold, II's must know something we don't...IMO
I tell myself I am an investor, not a gambler, yet still holding ftb.

[zoolook] 23/11/2016 09:30

Various narratives you can construct one being that TVH tried their berst, got exasperated and decided to put their best offer in and see what happens. Its not that clear whether LVD is truly in play. To many ifs and buts for me. Im out.

[mikepompeyfan] 23/11/2016 05:53

Sounds to me like they are waiting to see if the offer flushes out a rival bidder.

From The Times -

A Belgian supplier of industrial vehicles has launched a hostile bid for Lavendon Group after its initial takeover approaches were rebuffed by the British company’s largest shareholder.

Group Thermote & Vanhalst (TVH) has made a final cash offer of 205p a share for Lavendon, which rents out aerial work platforms, “cherry pickers”, to construction workers on sites across Britain, Europe and the Middle East.

The offer values Lavendon at £348 million and implies an enterprise value of about £506 million.

The Belgian group, which rents out forklift trucks, tractors and other gear across 170 countries, said that it had the “irrevocable” support of GVQ Investment Management and Unicorn Asset Management, the third and fourth largest shareholders in Lavendon with a total stake of 12.3 per cent.

However, TVH has been forced to make its offer public, without a recommendation from the board of Lavendon, after failing to secure the support of M&G Investments, the largest shareholder with an 18.6 per cent stake.

It is understood that M&G, which has owned shares in Lavendon for more than 15 years, does not believe the offer reflects the true value of the business. M&G held discussions with TVH after it approached Lavendon and shareholders in August, but made it clear it would only support an offer if it was significantly higher than 205p a share.

Lavendon said “having consulted with certain of the shareholders approached by TVH it was apparent that the level of support anticipated was not forthcoming”. It added: “Consequently the board unanimously concluded that it was unable to proceed with a recommended offer due to concerns over the significant execution risk and the potential disruption to business.”

Without the support of M&G, the Belgian group might have struggled to secure at least 75 per cent acceptances from shareholders to carry out a takeover by scheme of arrangement.

Pascal Vanhalst, a TVH board member, said: “Our strong preference has always been to announce an offer with the full support of the board of Lavendon. TVH believes the offer fully values the company and its prospects and has decided to release this firm offer announcement to allow Lavendon shareholders to decide on the merits.”

TVH’s offer is final but it said that it could raise the cash element of the offer if a rival bidder for Lavendon emerged. Shares in Lavendon rose 41.7 per cent to close at 197p a share.

[paulypilot] 22/11/2016 20:35

Cracking result - I've sold the lot, avg 194p, and banked a thwacking great profit!

PP.

[dr_smith] 22/11/2016 20:28

Given rules on declaring holdings, I reckon third parties/agents, nominees etc must amalgamate and declare under prinipal name, otherwise we would have more co's side-stepping declaration rules, but quite possible bank building a stake for TVH.
My guess-wotk / opinion.
Without knowing rules for principal buying whilst also submitting offer etc, it is hard to make informed guess.

[abcurtis] 22/11/2016 20:06

Over 11m shares traded today. Bank of Montreal saying they now have 2.6m shares, Morningstar does not show them with 1.5% holding, so assume they built it today. I guess a bank is building a stake on behalf of TVH. Could this be a reasonable thing to believe?

[mikepompeyfan] 22/11/2016 18:40

Wonder when the board will make their "further announcement in due course".

Tomorrow at 7am would be nice.

[dr_smith] 22/11/2016 18:09

gleach23 - oops - ta ;-)

[gleach23] 22/11/2016 17:44

Dr Smith - I think you'll find that's nearer 5%!

Also took 80% off the table today - happy with that after a frustrating 18 months here.

[dr_smith] 22/11/2016 16:59

Thank-you Aishah and bracke for info I hadn't seen.
If the reject notice was circa 10.46 a.m.(or earlier), there is no evidence in the share price through the day to reflect this. so maybe institutions knew of this before trading opened.
I remain a holder but don't know what to do at moment. As share price holds at close, it implies institutons are confident of this bid or higher going through.
Also close price of 195 to 205 is approx 0.5% gain over say 3 months.I would expect a wider margin to reflect the time and risk of waiting so long..unless this risk is offset by a higher bid.

[qs99] 22/11/2016 16:37

halved out as well....will see how next few days pan out....reinvested in DTG, still motoring after recent "ahead" RNS....DYOR etc and gla for next investments

[spud] 22/11/2016 16:28

Taken the offer @ just over 197p. Near enough.

spud

[dr_smith] 22/11/2016 15:52

The bid came out of the blue.
In general terms, not lvd specific, what stops a bidder from buying a chunk on open market ahead of disclosing an offer and saving themselves some money?
OK takeoever may not be succesfull, but I assume there is a legal rule to prevent them from buying up stock "cheap", but don't know what it is.

[keyno] 22/11/2016 15:49

Many thanks, Aishah.

[aishah] 22/11/2016 15:47

18. General

Investors should be aware that TVH or Libra Bidco may purchase Lavendon Shares otherwise than under the Offer, such as in open market or privately negotiated purchases.

[aishah] 22/11/2016 15:46

14. Expected timetable

The Offer Document, which will contain further information about the Offer, is expected to be published as soon as practicable and, in any event, within 28 days of the date of this Announcement (unless the Panel consents to a later date). The Offer Document will contain an indicative timetable for the implementation of the Offer.

Subject to the satisfaction, or (where relevant) waiver, of all relevant Conditions as set out in Appendix I to this Announcement, it is expected that the Offer will complete in the first quarter of 2017.