09 December 2022

European dealer group Hedin has abandoned its takeover bid for Pendragon due to “challenging market conditions and uncertain economic outlook”.

Pendragon announced it had received a second possible offer from Hedin on 26 September (after a secret 28p a share offer for Pendragon was rejected in March 2022).

Pendragon called this second offer an “unsolicited, preliminary and highly conditional possible cash offer from Hedin Group at 29p a share in cash”.

Due diligence was granted on 13 October – and it was confirmed former Pendragon boss Trevor Finn was backing the deal.

The offer period was extended in further announcements on 24 October and 21 November.

It was reported a £400m deal had been agreed (at 29p a share) on 21 November, which resulted in the second extension.

City sources indicated any deal could still be gatecrashed by Constellation Automotive, but the offer would have to be in the region of 35p a share.

In a statement released today (9 December), Pendragon said it noted the announcement released by Hedin Group.

“The board remains confident about the long-term prospects of Pendragon.

“This process has highlighted the value of Pendragon and the board will continue to explore opportunities to maximise value for its shareholders.”

It added that, despite a challenging economic backdrop, it expects to deliver group underling profit before tax “in line with expectations for the current financial year”.

Tags: Constellation Automotive, Hedin, Pendragon, Trevor Finn