26th Sep 2022 20:40
(Alliance News) - Hedin Mobility Group AB on Monday confirmed that it approached investee Pendragon PLC with a cash takeover offer that values the firm at GBP405.1 million.
The Vastra Gotaland County, Sweden-based mobility provider stated that it believes in the long-term potential of Nottinghamshire-based car dealer Pendragon.
It said that it will not consider or accept any offers for its current shareholding in the firm. Hedin Mobility is Pendragon's largest shareholder.
The company said the acquisition is dependent on "limited confirmatory due diligence" and the recommendation of the Pendragon board, among other things.
Hedin Mobility said that it reserves the right to waive these conditions at a later date.
Pendragon earlier Monday said that on September 21 it received an offer from Hedin Mobility for its entire issued share capital.
Under the terms of the deal, Hedin is offering a price of 29 pence per share, a valuation of GBP405.1 million for the entire company.
Shares in Pendragon closed 20% higher in London on Monday 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Pendragon was the subject of a GBP400 million takeover bid in July from Lithia Motors Inc. However, the proposal was withdrawn after Hedin blocked it.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 Abby Amoakuh; [email protected]
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