New York-listed US car dealership company Lithia Motors Inc on Friday was revealed as the company behind the last week’s withdrawn takeover bid for Pendragon PLC, according to Sky News.
Citing ‘city sources’, Sky News reported the firm was being advised by Goldman Sachs Group Inc.
Pendragon, a Nottinghamshire-based car dealership chain, had said last Friday a ‘large international corporate’ bidder for the car dealership chain decided against pursuing takeover talks, following ‘a period of due diligence’.
The potential suitor, which wasn’t named at that time, had made a bid of 29p per share. This valued Pendragon’s share capital at £405.1 million.
Pendragon said the proposal received ‘strong support’ from four out of its five largest shareholders. However, the company was unable to engage with one of these shareholders and therefore, given this lack of certainty, the bidder withdrew its non-binding offer and both parties terminated discussions.
According to Sky News, ‘insiders’ revealed it was 27% shareholder Hedin Mobility Group AB behind the dissent.
In March, Sky News reported that Pendragon had rejected a £400 million takeover approach from Hedin.
According to Sky, Hedin, a Swedish firm that operates more than 200 vehicle showrooms in Belgium, Norway, Sweden and Switzerland through its subsidiary Hedin Bil, had tabled a secret 28p offer.
https://news.sky.com/story/us-car-dealer-lithia-motors-unmasked-as-mystery-bidder-for-pendragon-12671076
Pendragon shares closed down 2.0% to 24.20 pence each in London on Friday.
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