Hedin's takeover plan of Evans Halshaw and Stratstone owner Pendragon gets extension

The London Stock Exchange has extended the deadline for Sweden-based Hedin Group to continue discussions and due diligence with Pendragon before it must decide whether to make a formal takeover bid for the major AM100 dealer group which trades under the Evans Halshaw and Stratstone brands.

It is now almost one month since Pendragon's board, led by chief executive Bill Berman, confirmed it had received an unsolicited, preliminary and conditional proposal from Hedin Mobility Group AB, for a possible cash offer for all shares at 29p per share.

A Pendragon statement today confirmed LSE's Takeover Panel has extended the deadline for Hedin to announce whether or not it will make an offer to 5pm on November 21, 2022.

"Discussions between the parties are ongoing and the board of Pendragon has granted Hedin Group access to complete its necessary due diligence," said the statement.

The deadline can be further extended by Pendragon, with the consent of the Takeover Panel.

Pendragon added that there can be no certainty that a firm offer will be made, and a further announcement will be made in due course.

At the end of September Hedin Group withdrew conditions which blocked rival bids after an announcement from Pendragon revealed it was conducting a review of its strategic options.

The Swedish automotive retailer, whose board includes former Pendragon chief executive Trevor Finn, said in a statement to 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”.