4:35 pm, September 22, 2023
Hedin and Sytner’s American owner Penske have lodged a fresh bid for dealer group Pendragon – upping their first offer by 14 per cent to 32p per share.
The duo’s initial offer of 28p per share was rejected by Pendragon earlier this week, with an offer from Lithia Motors said to be worth 27.4p per share currently on the table.
This afternoon’s announcement came from Pendragon via the London Stock Exchange and stated that its board had received another ‘unsolicited proposal’ from Hedin Mobility Group and Penske Automotive Group to buy all of Pendragon’s issued and to-be-issued share capital for 32p per share.
Pendragon, which owns the Evans Halshaw and Stratstone brands, says it’ll consider the new proposal and will consult with its shareholders, but it is advising them to take no action yet.
Under a current binding legal agreement between Pendragon and Lithia, it needs to hold a shareholder meeting on October 6 to approve the Lithia transaction.
So far, some 28.8 per cent of Pendragon’s shareholders have irrevocably voted to accept Lithia’s offer.
Lithia has a get-out clause if 30 per cent of the car manufacturers Pendragon represents don’t back the deal.
Hedin holds 26 per cent of Pendragon’s shares and launched an abortive bid to buy the company at the end of last year after previously blocking Lithia’s attempt to buy the firm in the summer of 2022.
If there is an announcement by a third party of a firm offer for Pendragon that its board has indicated it will recommend, shareholders holding approximately 11.5 per cent of the current issued share capital of Pendragon will no longer be bound by the terms of their irrevocable undertaking to vote in favour of the Lithia transaction.
Pendragon said there can be no certainty that any firm offer will be made.
Hedin and Penske have until 5pm on October 18 to give a firm undertaking whether or not they intend to make an offer for Pendragon.
