Hedin Group removes block on rival Pendragon takeover bids

Hedin Group has withdrawn its move to block rival bids for AM100 car retail group Pendragon after a “surprise” announcement from the PLC’s board.

In a dramatic U-turn, the Swedish automotive retailer said in a statement issued via the London Stock Exchange that it would now consider any takeover bid of 35p per share or more following an announcement which cast doubt over the future of Pinewood Technologies as part of Pendragon’s future business.

It comes just days after Hedin followed its 29p per share bid for the group – valuing the operation at around £411 million – with an assertion that it “will not consider or accept any other offers for its current shareholding in Pendragon”.

In its latest statement, Hedin said that it noted the announcement made by the board of Pendragon on September 27, which revealed it was conducting a review of potential strategic options for Pendragon, adding: “Hedin Mobility was surprised by the announcement which seems to contradict the long-term view of the Pendragon board that Pinewood continues to be a fundamental aspect of Pendragon's strategy, which was reiterated to Hedin Mobility by Pendragon as recently as 25 September 2022.

“In light of this radical change of direction from the Pendragon board, Hedin Mobility is considering its position in relation to its current shareholding, and refers to its own announcement entitled Statement Regarding Pendragon released on 26 September 2022. 

“The statement included the sentence ‘Hedin Mobility believes in the long-term potential of Pendragon and will not consider or accept any other offers for its current shareholding in Pendragon’. 

“Hedin Mobility reserves the right to set this sentence aside in the event that a third party announces a firm offer for Pendragon at a price not less than 35 pence per Pendragon share.”

Earlier this year another 29p per share bid, believed to be made by US-based Lithia Motors Group, fell flat after a major shareholder refused to engage in talks.

The failed talks followed a share acquisition which made Anders Hedin Pendragon’s largest shareholder.