5:50 pm, September 27, 2022
Pendragon’s board has announced it is carrying out a wide-ranging review of its options for the benefit of its shareholders.
Issuing a statement as the London Stock Exchange closed for the day today (Sep 27), it came in the wake of a possible cash offer by Hedin Group at 29p per share and has been partly prompted by a threat to one of its divisions.
Hedin has said it will block any rival bid for Pendragon, whose brands comprise dealership chains Evans Halshaw and Stratstone as well as the online marketplace CarStore, its Pinewood software-as-a-service (SaaS) division and the fleet and contract hire arm Pendragon Vehicle Management.
Hedin has said it doesn’t intend keeping the Pinewood division if it succeeds in its takeover.
In the statement, issued at 5pm today, Pendragon said: ‘The board of Pendragon…announces that it is conducting a comprehensive review of all potential strategic options for the company to maximise value for all shareholders.
‘The board continually evaluates all options to maximise shareholder value, although this review will be accelerated following the announcement made by the company on 26 September 2022 regarding a possible cash offer from Hedin Mobility Group AB (“Hedin Group”).
‘The Pendragon business is made up by its market-leading Evans Halshaw and Stratstone brands, an omnichannel used car offering, a highly differentiated SaaS dealer-management division and a highly profitable and cash generative leasing business.
‘The board remains excited about the future prospects for all parts of the company.
‘However, in light of the possible cash offer from Hedin Group which the board is currently considering together with its financial and legal advisers, the board will consider all options in order to maximise shareholder value.
‘This review will include potential options with respect to each major Pendragon business, in part as a result of an indication from the Hedin Group outlined in their proposal that it is not their intention to retain the Pinewood SaaS division for the long term and would seek an appropriate partner for the Pinewood business.’
Pendragon said a further announcement would be made if and when appropriate.
