26th Sep 2022 10:01
(Alliance News) - Pendragon PLC on Monday said that on September 21 it received an offer from Hedin Mobility Group AB for its entire issued share capital.
Under the terms of the deal, Hedin - the company's largest shareholder - is offering a price of 29 pence per share, a valuation of GBP405.1 million for the entire company.
Shares in the Nottinghamshire-based car dealership company were trading 20% higher in London on Monday morning at 27.20 pence.
Pendragon said it was "currently considering the proposal" and urged its shareholders to take no action.
Pendragon said that the announcement had been made "without the consent of Hedin Group".
Hedin is a Swedish privately-owned investment company investing in businesses mainly related to the vehicle industry. It has until October 24 to announce a firm intention to make an offer for Pendragon, or announce that it does not intend to make an offer.
Pendragon was the subject of a GBP400 million takeover bid in July from Lithia Motors Inc. However, the proposal was withdrawn after Hedin blocked it. Back in March, Hedin tabled a "secret" 28 pence per share offer which was also rejected.
By Chris Dorrell; [email protected]
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