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Nicholas Grove is a Morningstar journalist.

Industrial equipment and investment company Seven Group Holdings (SVW) on Tuesday said it will acquire all the shares in National Hire Group (NHR) it does not already own, after Elph Pty Ltd accepted Seven's offer for its 21.9 per cent stake.

Elph Pty Ltd is headed by Caterpillar dealer Dale Elphinstone, a National Hire director who originally knocked back Seven's initial bid as inadequate.

As a result of Elph's acceptance, Seven now has 98.7 per cent of National Hire shares and this will trigger the rise in its offer price from $3.35 to $3.75 a share as agreed to previously.

"Shareholders who have already accepted Seven's offer will receive the additional $0.40 per share from Seven," the company said in a statement to the Australian Securities Exchange (ASX).

"The offer period will now close on 19 December 2011."

National Hire independent director Stephen Donnelley said he believes Seven's final offer price of $3.75 represents an attractive price for National Hire shares.

"Given Seven can now compulsorily acquire National Hire shares, remaining National Hire shareholders should accept into Seven's offer to receive earlier payment for their shares," he said.

National Hire Group owns a 46.1 per cent stake in the Coates Hire business, the largest equipment rental business in Australia with a network of over 200 branches across the country.

Mr Elphinstone said after careful consideration his company had reluctantly decided to accept the offer.

"We remain positive about the future prospects of Coates Hire, Allight Sykes and the other National Hire businesses," he said.

"However, with Seven committed to the delisting of National Hire from the ASX, Elph has decided that it would prefer not to remain a minority shareholder in National Hire Group Limited as a delisted entity, whether public or private."