Hedin has more time to bid on Pendragon

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Pendragon has granted a further extension to Hedin to conduct due diligence for its tender offer.

At the end of September, Pendragon received a cash offer from Hedin valued at 29 pence per share.

Hedin had to make a firm offer for Pendragon by October 24 or walk out. This deadline has been extended until November 21 and today it has been extended again until December 9.

Last month Pendragon said it was carrying out a “full review” of the company’s operations in light of Hedin’s £400million bid for the company.

He said Hedin’s proposal indicated that a successful bid would involve a breakup of the company with the sale of its Pinewood software arm.

Pendragon has three main divisions, its volume arm Evans Halshaw, the premium division Stratstone and Pinewood.

He described Pinewood as “a highly differentiated SaaS dealer management division and a highly profitable, cash-generating rental business.”

In the statement released today, Pendragon said: “In order to finalize the necessary documentation for the transaction…the company has requested, and the panel has consented, an extension to the date on which Hedin Group is required to announce a firm intention to make an offer for Pendragon.

“This announcement must now be made no later than 5:00 p.m. on December 9, 2022. This deadline may be extended by Pendragon’s board of directors, with the agreement of the takeover committee.

“There is no certainty that a firm offer will be made. A further announcement will be made in due course.”

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