7:36 am, June 16, 2023
One of Pendragon’s significant investors has sold the majority of its shares in the dealer group following allegations of sexual misconduct.
Hedge fund Odey Asset Management has offloaded more than five per cent of the automotive giant, leaving it with a residual stake of around four per cent.
Sky News reports that the shares were bought by a mix of new and existing shareholders in the Car Dealer Top 100 outfit.
The sale, handled by investment bank Peel Hunt, came after the hedge fund announced plans to disband itself, following boss Crispin Odey being accused of sexual misconduct.
Odey, a major donor to the Conservative Party, is facing multiple allegations from junior female members of staff but denies any wrongdoing.
In a statement released yesterday Odey said the allegations had affected its investment management activities.
A spokesman for the company said: ‘Given that, the firm is now in advanced discussions for rehousing funds and transferring certain fund management activities and individuals to other asset managers.
‘Any sale or rehousing is considered subject of course to any relevant regulatory approvals and due diligence, with a view to an orderly transition of any assets and investors.’
It has not yet been revealed exactly who the new investors in Pendragon are but they will be taking up shares in one of the most profitable dealer groups in the country.
The outfit enjoyed a better-than-expected start to the year as underlying pre-tax profit soared to £23m.
However, the group is no stranger to investor controversy and has faced several shareholder revolts in recent years, largely due to arguments around bonuses.
Earlier this year minor shareholder Palliser called for boardroom change after accusing directors of being ‘distracted’ by takeover talks with Hedin Group, which eventually fell through.
