Pendragon acquisition by Lithia Motors shut down by largest shareholder
Summary
A rejected bid for London-listed car dealership Pendragon earlier this month was proposed by US dealership Lithia Motors, a Sky News report has revealed. NYSE-listed Lithia Motors’ 29p-per-share offer, which valued Pendragon at £460mln, was apparently shut down by Pendragon’s largest shareholder, the Swedish car retailer Hedin Group. The move by Hedin Group is unsurprising, given that it made its own unsuccessful £400mln bid for Pendragon in March this year. Pendragon’s non-executive chairman Ian Filby rejected Hedin Group’s 28p-per-share offer, which was kept secret from company investors, according to Sky. Pendragon operates the Evans Halshaw vehicle dealership and the premium Stratstone retailer, as well as online retailer CarStore, software division Pinewood Technologies, and the Quickco parts distributor.