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Pendragon has unanimously rejected an unsolicited proposal by Hedin Mobility and Penske two days after it declared it was promoting its Evans Halshaw, status Stratstone dealerships and on-line CarStore enterprise to US motor retailer large Lithia Motors in an accepted £250 million deal.
Hedin Mobility Group made an analogous provide final yr which valued it at greater than £400 million that was subsequently withdrawn.
Sytner is the UK’s largest automotive retail group within the UK, has greater than 100 dealerships nationwide and its portfolio ranges from Audi and BMW to Ferrari and Lamborghini.
Hedin has been increasing throughout Europe, shopping for Toyota and Mercedes dealerships in Belgium, and in Switzerland the place it’s now the second largest BMW and Mini dealership
Pendragon’s board has already agreed a proposal with Lithia, topic to shareholder approval, which might dump its leasing and motor dealership companies to Lithia UK Holding, the UK division of NYSE-listed Lithia.
As a part of the accepted provide by Lithia Motors, Pendragon can also be planning a partnership to roll out its supplier administration software program arm, Pinewood, to Lithia’s 50 UK websites and North American operations. If these offers are accomplished by the top of the yr the slimmed-down Pendragon will stay listed on the London Inventory Alternate and alter its title to Pinewood Applied sciences.
The acquisition, which follows Lithia’s acquisitions of Jardine Motors and Arden Group already this yr, would imply Lithia would occupy second spot within the AM100, with a UK enterprise producing greater than £5 billion revenues.
In an announcement to the London Inventory Alternate, Pendragon stated that Hedin and US-based Penske had rejected the 28 pence share provide, stating that it basically undervalued the corporate and was due to this fact “not in one of the best pursuits of shareholders or different stakeholders”.
“The board is happy in regards to the future prospects for Pendragon because of the transaction introduced with Lithia Motors on 18 September 2023, which, if accomplished, will ship a considerable money dividend and create a pure play software program as a service enterprise with an accelerated progress plan and a strategic partnership to enter North America.”
.Below market guidelines PAG and Hedin have till 5pm on October 18 to make a agency provide or stand down.
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