The FCA rules on Pendragon sell-off to Lithia

The Financial Conduct Authority has given the go-ahead for US-based Lithia Motor's takeover of the motor retail part of Pendragon, including its Pendragon Finance and Insurance Services Limited business.

Lithia's acquisition is now expected to complete on January 31, 2024 - a date which will mark the beginning of the transformation of Pendragon into Pinewood Technologies, a pure-play software business, which operates the company's dealer management software business.

And this business will enter a strategic partnership with a wholly owned subsidiary of Lithia Motors, to give a foothold for the Pinewood DMS in North America.

Following completion of the transaction, Pendragon confirms its intention to return a cash amount equivalent to approximately 24.5 pence per ordinary share to shareholders by way of a special dividend which is now expected to be paid in Q1/Q2 2024.

The board of Pinewood Technologies will be joined by two Lithia executives: Chris Holzshu, chief operating officer, and George Hines, chief technology officer, in non-executive director roles.

Mark Willis will step down as director and chief financial officer of the Pinewood Technologies and his successor will be Oliver Mann.