Hedin preparing takeover bid for Pendragon?
08 November 2021
Hedin Group has been building its Pendragon stake in recent weeks, leading to speculation the Swedish firm may be preparing a takeover bid for the 32-year old retailer.
Under stock exchange rules, Hedin must make a takeover offer to other shareholders if its stake goes beyond 29.9%. Recently, Hedin’s shareholding passed 26%. Pendragon has a market cap of just under £260m.
Last month, Hedin announced a new group structure where all automotive companies held in the Hedin Group are now held by I.A Hedin Bil AB. Erik Selin also joined as a new 25% shareholder, delivering a significant cash injection through a new share issue of SEK 3.57bn (around £3bn).
“With a strong and competent shareholder on board, we can expand even faster, which enables further growth and international expansion,” said Anders Hedin in welcoming Mr Selin.
Former largest shareholder Teleios has already exited the retailer.
Last month, former DFS chief executive Ian Filby joined Pendragon as independent non-executive chairman, taking on the role from CEO Bill Berman. The move was praised by Anders Hedin in a statement, who said “we are supportive of the management and look forward to work constructively with the board”.
Former Pendragon CEO Trevor Finn has recently claimed he is a non-executive director of Hedin Group.When asked about the developments, Pendragon declined to comment.
Auto Retail Agenda has also approached Anders Hedin for comment; by the time of our requested deadline, we had yet to receive comment.
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