On September 18, Pendragon, a British automotive corporation, announced its plans to sell its UK motor and leasing companies to Lithia for a total of £250 million ($310 million). Along with this sale, Pendragon will also enter into a strategic partnership with Lithia to expand its dealer management software program (DMS) company into North America. As portion of the partnership, Pinewood, Pendragon’s DMS company, will be rolled out to Lithia Motors’ current 50 UK internet sites. In addition, a joint venture will be made to accelerate Pinewood’s entry into the North American DMS market place.
Pendragon described this transaction as the outcome of its strategic evaluation initiated final year. The corporation believes that the sale will create substantial worth for shareholders, with an estimated money dividend of roughly £240 million. Below the joint venture, Lithia will subscribe to 279.four million new ordinary shares in Pendragon, amounting to £30 million. Regardless of these adjustments, Pendragon will retain its current listing on the London Stock Exchange and rebrand as Pinewood Technologies Plc.
Note: The Reuters write-up does not offer distinct specifics about JV.