22 September 2023

Hedin Mobility Group and Sytner owner Penske have increased their offer for Pendragon to 32 pence a share in a bid to stop the takeover by US firm Lithia which owns Jardine Motors.

The move comes two days after a 28p a share was dismissed by the Pendragon board.

In a stock market statement Pendragon said the “revised proposal remains subject to a number of pre-conditions, including the completion of due diligence, antitrust approvals and external debt financing”.

However, this time the board has not rejected the offer immediately, instead stating: “The board will consider the revised proposal and will consult with its shareholders and provide an update in due course.”

Pendragon shareholders are set to vote on the original Lithia takeover on 6 October with a 51% majority required to gain approval.

Lithia claims to have irrevocable undertakings to vote with them from 28.8% of Pendragon shareholders. However, the new stock market statement has added that: “In the event that there is an announcement by a third party of a firm offer for the Company that the Board has indicated it will recommend, shareholders holding approximately 11.5% of the current issued share capital of Pendragon will cease to be bound by the terms of their irrevocable undertaking.”

Lithia’s deal, revealed five days ago, will see the US firm take the fleet and retail division of Pendragon private while leaving the Pinewood software as the remaining listed PLC. Lithia has offered £250 million for the motor business and plans to invest £30m in Pinewood.

The new Hedin-Penske bid values the entirety of Pendragon PLC at more than £450m. It is unclear how Penske and Hedin Mobility Group would divide Pendragon.

Tags: Hedin Mobility, Lithia, Pendragon, Penske, Pinewood, Pinewood Technologies, SaaS, Sytner