Pendragon shares fall as Hedin and Penske pull out of takeover race

(Alliance News) - Hedin Mobility Group AB and PAG International confirmed on Wednesday that they would not be making an offer for Pendragon PLC.

Late last month, Pendragon received a revised takeover proposal from Hedin and PAG for 32 pence per share. An earlier tilt of 28p per share had been rejected, with Pendragon saying the offer was a fundamental undervaluation of the company.

Hedin is a Molndal, Sweden-based, European mobility enabler operating in fourteen countries, while PAG is part of Penske Corp, an American diversified transportation services company.

Pendragon also received an offer from AutoNation Inc to acquire the company for 32 pence per share last month.

More recently, Pendragon announced that it has agreed to improved terms with Lithia Motors Inc for the sale of its UK motor business and leasing business.

Pendragon and Lithia Motors announced on Monday that they have agreed to terms of an increase in the cash consideration for the disposal to GBP367 million from GBP250 million previously.

Shares in Pendragon were down 5.5% at 33.25 pence on Wednesday afternoon in London.

By Heather Rydings, Alliance News senior economics reporter

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