Lithia adds an extra £117 million to its Pendragon acquisition offer

America's Lithia Motors has increased its acquisition offer for Pendragon by 42%, another £117 million, taking the amount being offered for all its Stratstone, Evans Halshaw, Carstore and PVM motor businesses up to £397 million.

Its revised bid comes after its original takeover offer attracted the attention of Sytner's parent Penske Automotive Group and Hedin Mobility Group together, plus Auto Nation in the USA, who have each submitted their own propsals.

Lithia was already the bidder favoured by Pendragon's board. It would entail the Pinewood software division remaining as a listed company, with a £30m investment from Lithia, while all Pendragon's motor retailing business would move to join Jardine Motors Group, which Lithia acquired earlier this year.

Lithia's revised proposal provides shareholders with a total value per ordinary share comprising: (i) expected 24.5 pence in cash, to be received by way of a dividend; (ii) a retained c.83.3 per cent. ownership in the continuing Pendragon business (including Pinewood) valued initially at c.10.3 pence per share; and (iii) an indirect interest in the North American joint venture valued initially at c.0.6 pence per ordinary share.

In aggregate, it's the equivalent of a 35.4p per share offer, and thereby outbidding the Penske/Hedin 32p per share bid.

Pendragon's statement today said: "The board of directors of Pendragon continues to consider the revised transaction to be in the best interests of the shareholders as a whole and recommends that shareholders vote in favour of the resolutions."