Hedin Group makes ‘highly conditional’ £411m takeover offer for Pendragon

Swedish car retailer Hedin Group has tabled its second takeover bid for Pendragon in six months – this time “highly conditional” 29p per share offer.

Already the PLC’s largest shareholder, the business of Swedish car retailer Anders Hedin has tabled his latest all-out bid for control of the AM100 PLC just months after the failure of a separate, identically-priced offer – believed to have been made by US-based Lithia Motors.

At the time, Pendragon reported that discussions had fallen flat after one of Pendragon’s five major shareholders failed to engage in talks.

The latest bid values Pendragon, the group behind Evans Halshaw, Stratstone and CarStore dealerships, at around £411m.

In a statement issued via the London Stock Exchange this morning (September 26) said that Pendragon's board had "received an unsolicited, preliminary and highly conditional proposal from Hedin Mobility Group".

It added: “The board of Pendragon is currently considering the proposal together with its financial and legal advisers. Shareholders are urged to take no action at this time.

“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.”

The statement revealed that Hedin Group will be required, by not later than 5pm on October 24, to announce a firm intention to make an offer for the company or to announce that it does not intend to make an offer.

The person responsible for arranging for the release of this announcement on behalf of Pendragon is Richard Maloney, group general counsel and group company secretary, the statement said.

In spring 2022 Hedin made a 28p per share offer for Pendragon, which was rejected.