Hedin has more time to run the rule on Pendragon in the offer

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Pendragon grants an extension to Hedin to complete its takeover bid due diligence.

At the end of September, Pendragon received a cash offer for its Hedin business 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. It may, if necessary, be extended again by Pendragon with the agreement of the Takeover Panel.

“Discussions between the parties are ongoing and Pendragon’s Board of Directors has granted Hedin Group access to complete its necessary due diligence.

Pendragon’s board of directors may extend this period, with the agreement of the takeover committee.

Last month Pendragon, in response to the offer, said it was carrying out a “full review” of the company’s operations in light of Hedin’s £400m offer 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 a statement, Pendragon said: “The Board of Directors remains enthusiastic about the future prospects for all parts of the business.

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