Pendragon, a leading U.K. motor dealership, announced that it has received an unsolicited proposal from AutoNation to acquire its entire share capital. The proposal, valued at 32 pence per share in cash, puts the business at an estimated worth of 448 million pounds ($547 million).
While Pendragon acknowledges AutoNation’s interest, they have noted that the proposal is subject to several preconditions, including the completion of due diligence. Consequently, there is no guarantee that a formal offer will be made or that the terms of any potential offer will align.
This comes shortly after Pendragon rejected a previous takeover bid from Hedin Mobility Group and PAG International, the subsidiary of Penske Automotive Group. The initial bid offered 28 pence per share for Pendragon’s entire share capital of 1.4 billion shares.
However, on Friday, Pendragon revealed that it has received another unsolicited proposal from Hedin Mobility and PAG, this time suggesting an offer of 32 pence per share.
It is worth noting that in September 2022, Hedin Mobility made a takeover offer of GBP405.1 million, equivalent to 29 pence per share. However, this offer was eventually withdrawn due to challenging market conditions and an uncertain economic outlook.
In a separate development earlier this week, Pendragon announced plans to sell its entire U.K. motor business and leasing business to Lithia Motors for GBP250 million. This move will be accompanied by a name change and the establishment of a strategic partnership with Lithia.