Pendragon to conduct business review following Hedin’s offer

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Pendragon is carrying out a ‘comprehensive review’ of the company’s operations in light of the £400m bid for the company made by Hedin Mobility Group earlier this week.

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.

“However, in light of the possible cash offer from the Hedin Group which the Board of Directors is currently considering with its financial and legal advisors, the Board of Directors will consider all options in order to maximize shareholder value.

“This review will include potential options for each major Pendragon business, in part as a result of an indication from the Hedin Group described in its proposal that it does not intend to retain the Pinewood SaaS division for the long term. and would seek a suitable partner for the Pinewood business.

“A further announcement will be made if and when appropriate.”

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