Hedin Group has abandoned its £400m takeover bid for Pendragon, the Nottingham car retailer.
The largest shareholder of Pendragon revealed proposals for a possible cash offer back in September, at 29 pence per share in cash, which was followed by multiple deadline extensions to make a firm offer for the business.
Now, however, it has been confirmed that Hedin does not intend to make an offer for Pendragon due to challenging market conditions and the uncertain economic outlook.
In response to the news, Pendragon has said: “The Board remains confident about the long-term prospects of Pendragon. This process has highlighted the value of Pendragon and the Board will continue to explore opportunities to maximise value for its shareholders.
“The economic backdrop remains challenging, however the Board continues to expect to deliver group underlying profit before tax in line with expectations for the current financial year.”
The Hedin Group, which has over 200 car dealerships, is a family-owned company with operations mainly in the sale and service of vehicles, wholesale of spare parts and tires for vehicles and rental car operations.
