Shares in Pendragon jump on takeover approach
By Abigail Townsend
Date: Monday 26 Sep 2022
(Sharecast News) - Shares in Pendragon motored ahead on Monday after the car dealership received a £406m takeover approach from its largest shareholder.
The London-listed group - which includes the Stratstone and Evans Halshaw brands - said it had received an "unsolicited, preliminary and highly conditional" cash offer from Sweden's Hedin Mobility Group on 21 September.
At 29p per share, the proposed offer is around 28% higher than the company's closing price of 22.7p on Friday.
Shares in Pendragon jumped on the news, and by 1000 BST on Monday they were trading 20% higher at 27.2p.
Pendragon said it was considering the approach with its advisors, and noted that there was no certainty that a firm offer would be made.
Should a deal go ahead, however, it would mark a return for founder and previous chief executive Trevor Finn, who led the firm for more than 20 years until he left in 2019. He is now a non-executive director at Hedin.
Under the Takeover Code, Hedin - which has a stake of around 27% in Pendragon - has until 24 October to make a firm offer for the firm or walk away.
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