One particular of the UK’s biggest auto retailers, Pendragon, has announced that it will sell all of its automobile dealerships for £280mn and shift its concentrate to application. This selection brings an finish to a tumultuous period for the firm, through which its attempts to sell itself have been hindered by its biggest shareholder.
US group Lithia, currently operating 50 web-sites in the UK, has been named as the purchaser for Pendragon’s showrooms. Final summer time, Lithia attempted to buy Pendragon totally with a bid of £460mn. Having said that, this bid was blocked by Hedin, Pendragon’s biggest investor from Sweden.
In response, final autumn, Hedin created its personal try to buy Pendragon, but was met with resistance. The acquisition by Lithia will only call for a straight majority of Pendragon shareholders to approve, generating it much more difficult for Hedin to sabotage the deal, as it owns much less than a third of Pendragon.