Pendragon has received “an unsolicited, preliminary and highly conditional proposal” from shareholder Hedin Group regarding a possible cash offer for the business.
The bid is for 29 pence per share of the Nottingham car retailer, valuing it at £400m.
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.
Pendragon said: “The Board of Pendragon is currently considering the proposal together with its financial and legal advisers.
“There can be no certainty that any firm offer will be made, nor as to the terms on which any firm offer might be made. A further announcement will be made if and when appropriate.”
Hedin Group will be required either to announce a firm intention to make an offer for the company or to announce that it does not intend to make an offer by 24 October 2022.
