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British car dealer Pendragon revises assessment after top investor’s takeover proposal

British car dealer Pendragon revises assessment after top investor's takeover proposal

Sept. 27 (Reuters) – Pendragon Plc (PDG.L) is accelerating a review of all strategic options after receiving an unsolicited preliminary proposal worth approximately £406 million ($436 million) from Hedin Mobility Group, its largest shareholder, the British car dealer said Tuesday.

The cash offer, made on September 21, valued the London-listed company at 29 pence per share. Shares, which were up nearly 20% on Monday after the proposal was announced, closed 0.4% lower on Tuesday at 27.1 pence.

Pendragon said last month that talks over a possible acquisition were ended after an undisclosed “major international company” withdrew its interest. read more

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“The board is continuously evaluating all options to maximize shareholder value, although this review will be accelerated following the company’s announcement on September 26, 2022 regarding a potential cash offer from Hedin Mobility Group AB,” said the brands owner. Evans Halshaw and Stratstone. .

The review will cover each major company, as the Hedin Group has indicated that it had no intention of keeping the Pinewood SaaS division for the long term and seeking a suitable partner for the arm, Pendragon said.

According to data from Refinitiv Eikon, Hedin has a 27% stake in the car dealership.

($1 = 0.9308 pounds)

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Reporting by Shanima A in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila

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