Shares crash at Pendragon after £400m takeover deal collapses

The share price at Nottingham-based car retail group Pendragon has slumped after it was revealed that a potential suitor had called off a £400m takeover bid.

Shares were down over 26% by close of trading on Friday (December 9) to 20.7p each – almost their lowest level of the year – after Hedin pulled back from the takeover, citing “challening market conditions”.

The move ends a period of uncertainty over any deal, the origins of which stretch back to September and which Pendragon dubbed as “unsolicited”. On November 21, Pendragon issued a “put-up-or-shut-up” deadline to complete the 29p per share deal to Hedin of 5pm on Friday.

With the deal now off, Pendragon said: “The board remains confident about the long-term prospects of Pendragon. This process has highlighted the value of Pendragon and the Board will continue to explore opportunities to maximise value for its shareholders.

“There is a clear path to deliver the strategy to transform automotive retail through digital innovation and operational excellence. The economic backdrop remains challenging, however the board continues to expect to deliver group underlying profit before tax in line with expectations for the current financial year.”

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