One of many UK’s largest auto retailers, Pendragon, has introduced that it’ll promote all of its automobile dealerships for £280mn and shift its focus to software program. This choice brings an finish to a tumultuous interval for the corporate, throughout which its makes an attempt to promote itself have been hindered by its largest shareholder.
US group Lithia, already working 50 websites within the UK, has been named as the client for Pendragon’s showrooms. Final summer season, Lithia tried to buy Pendragon completely with a bid of £460mn. Nonetheless, this bid was blocked by Hedin, Pendragon’s largest investor from Sweden.
In response, final autumn, Hedin made its personal try to buy Pendragon, however was met with resistance. The acquisition by Lithia will solely require a straight majority of Pendragon shareholders to approve, making it tougher for Hedin to sabotage the deal, because it owns lower than a 3rd of Pendragon.