America’s Lilthia Motors has increased its acquisition offer for Pendragon by 42%, one other £117 million, taking the quantity being offered for all its Stratstone, Evans Halshaw, Carstore and PVM motor businesses as much as £397 million.
Its revised bid comes after its original takeover offer attracted the eye of Sytner’s parent Penske Automotive Group and Hedin Mobility Group together, plus Auto Nation within the USA, who’ve each submitted their very own propsals.
Lithia was already the bidder favoured by Pendragon’s board. It will entail the Pinewood software division remaining as a listed company, with a £30m investment from Lithia, while all Pendragon’s motor retailing business would move to affix Jardine Motors Group, which Lithia acquired earlier this 12 months.
Lithia’s revised proposal provides shareholders with a complete value per odd share comprising: (i) expected 24.5 pence in money, to be received by means of a dividend; (ii) a retained c.83.3 per cent. ownership within the continuing Pendragon business (including Pinewood) valued initially at c.10.3 pence per share; and (iii) an indirect interest within the North American three way partnership valued initially at c.0.6 pence per odd share.
In aggregate, it is the equivalent of a 35.4p per share offer, and thereby outbidding the Penske/Hedin 32p per share bid.
Pendragon’s statement today said: “The board of directors of Pendragon continues to think about the revised transaction to be in the very best interests of the shareholders as an entire and recommends that shareholders vote in favour of the resolutions.”
This Article First Appeared At www.am-online.com