Pendragon has sold five Volkswagen dealerships to Volkswagen Group UK today.

The dealerships in Leicester, Redditch, Stafford, Stourbridge and Wolverhampton were part of its new Reg Vardy subsidiary and represented group assets of £16,770,625. The businesses contributed a loss of £0.27 million to the Reg Vardy group last year.

Volkswagen Group UK will immediately transfer the five businesses to three unnamed separate dealers in the UK.

Pendragon won a bidding war with rival dealership group Lookers with a 900p per share offer for Reg Vardy last month.