D-Day revealed for £397m Pendragon takeover vote

A £397m deal to sell a Nottingham-based car retail giant’s UK motor and leasing business will be decided later this month after a date was set for a vote on the offer.

Shareholders will now vote on the major deal, which would see Lithia UK Holdings, a subsidiary of Lithia Motors, take over Pendragon’s retail brands in the UK – with the results being announced at a meeting in London on Wednesday October 25.

The boards of Pendragon and Lithia Motors had previously agreed the terms of a strategic partnership with Lithia, including the rollout of Pinewood, the company’s dealer management software (DMS) business, to Lithia’s existing 50 UK sites and the creation of a joint venture to accelerate Pinewood’s entry into the North American DMS market.

Last week, a joint bid by Sweden’s Hedin Mobility Group and Leicester-based PAG International, which owns the Sytner brand, withdrew their £447m offer for Pendragon, which runs the Evans Halshaw and Stratstone outlets.

Meanwhile, US firm AutoNation has  tabled a £447m offer for Pendragon.

At lunchtime on Monday (October 9), Pendragon’s share price was running at 33.55p – up just over 1.5% on the day.