05.11.2019

Who is bidding for Cramo?

Finnish international rental company Cramo has received interest from an unnamed suitor regarding a takeover bid.

The company says that it is in advanced negotiations regarding the bid, which would be at a price of €13.25 per share. The shares closed at €10.12 yesterday but rocketed to a high of €12.96 before dropping back to €12.76 after the announcement, although it has started to pick up again. The offer values the company at just over €592 million.

The company has said that there is no certainty that the bidder will make a formal offer and that if it did, the deal would be subject to referrals.

The full statement is as follows: “Cramo announces that it has received indications of interest regarding a potential voluntary cash tender offer for all of the outstanding shares in Cramo. Cramo is currently evaluating its strategic alternatives.”

“Cramo is currently in advanced negotiations concerning the Potential Tender Offer. If negotiations concerning the Potential Tender Offer are successful, Cramo expects that a voluntary cash tender offer for all of the outstanding shares in Cramo would be made at an offer price of €13.25 per share. The Potential Tender Offer would be subject to customary conditions, including required authority approvals. In Cramo's understanding, the potential offeror would, upon the announcement of the Potential Tender Offer, have sufficient financial means required by the Potential Tender Offer.”

“Cramo emphasises that there is no certainty regarding the outcome of the negotiations concerning the Potential Tender Offer or as to the terms on which any Potential Tender Offer might proceed. Cramo will disclose further information as and when appropriate.”

Vertikal Comment

The move follows Loxam’s acquisition of rival Finnish international rental group Ramirent this summer. The question is of course, who is the mystery buyer? Could it be TVH which has been highly acquisition, often a rival to Loxam in European acquisitions, or United Rentals looking to finally get serious about the European market?

Time will tell of course.

Watch this space.