Hedin and PAG International have backed out of the race to acquire Nottingham-based car retailer Pendragon.
The team had planned to offer 32 pence per share, in cash, upgraded from a previous 28 pence per share offer.
The news follows a new bidder stepping forward, with American firm AutoNation wanting to acquire the entire issued and to be issued share capital of Pendragon for 32 pence per share, in cash.
It also comes after Lithia Motors, one of the largest automotive retailers in North America, increased its offer for Pendragon’s UK motor business and leasing business by £117 million, to £367 million. The total cash consideration is £397 million, including a previously publicly disclosed subscription for shares in Pendragon.
Last month Pendragon revealed plans to sell its UK motor business and leasing business to Lithia. They also agreed the terms of a strategic partnership, including the rollout of Pinewood, the company’s dealer management software (DMS) business, to Lithia’s existing 50 UK sites and the creation of a joint venture to accelerate Pinewood’s entry into the attractive North American DMS market.
As part of the transaction, it was announced that Pendragon’s Pinewood division, which operates the company’s proprietary DMS business, would become a standalone entity, retaining Pendragon’s existing listing on the London Stock Exchange and creating a pure play Software as a Service (SaaS) business with an accelerated growth plan.
