Luxurious automobile retailer Pendragon has acquired a recent takeover provide from its largest shareholder valuing the group at about £400 million.
The UK group, which trades beneath the Evans Halshaw and Stratstone manufacturers, described the attainable money provide of 29p per share from Sweden’s Hedin Mobility Group as “unsolicited, preliminary and extremely conditional”. It follows a earlier bid by Hedin within the spring of this yr, which the board of Pendragon rejected.
Hedin – which operates greater than 200 showrooms throughout Belgium, Norway, Sweden and Switzerland – presently has a 26 per cent stake in Pendragon. It has been a critic of Pendragon’s board lately, notably on the problem of govt pay.
Shares in Pendragon closed virtually 20% greater yesterday, although at 27.2p remained barely adrift of the potential provide value.
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Pendragon stated it’s presently contemplating the proposal and urged shareholders to take “no motion presently”. Hedin has till October 24 to make a agency provide or stroll away.
Pendragon reported report earnings in March as demand for automobiles has surged because the lockdown section of the pandemic. International semiconductor shortages have led to lengthy wait occasions for brand spanking new automobile deliveries, which in flip has pushed up demand and costs within the used automotive market.
Used automobile revenues, spearheaded by Pendragon’s CarStore model, have been up 43% on the earlier yr because the group posted a pre-tax revenue of £83m through the 12 months to the top of December. That was up greater than 900% from the earlier yr’s buying and selling.
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Headquartered in Nottingham, Pendragon was fashioned in 1989 following the demerger of UK conglomerate Williams Holdings. The group now represents 21 totally different automobile producers within the retail sector, with greater than 160 websites throughout the UK.
In 2020 Pendragon made an strategy to purchase rival Lookers in a deal that might have created the UK’s largest automobile retailing group by a substantial margin. Nevertheless, a deal did not materialise after talks broke down.
In January, privately-owned Constellation Automotive – the group behind WeBuyAnyCar and Cinch – purchased a near-20% stake in Lookers. The transfer got here after Constellation, which has a multibillion pound valuation, agreed a £200m takeover of Marshall Motor Group, one other bodily automobile supplier.