• Wed. Oct 4th, 2023

Pendragon Declares Sale of UK Motor and Leasing Companies to Lithia for $310 million: UPDATE 2

ByEditor

Sep 18, 2023
Pendragon Declares Sale of UK Motor and Leasing Companies to Lithia for $310 million: UPDATE 2

On September 18, Pendragon, a British automotive firm, introduced its plans to promote its UK motor and leasing companies to Lithia for a complete of £250 million ($310 million). Together with this sale, Pendragon may also enter right into a strategic partnership with Lithia to develop its seller administration software program (DMS) enterprise into North America. As a part of the partnership, Pinewood, Pendragon’s DMS enterprise, will probably be rolled out to Lithia Motors’ current 50 UK websites. Moreover, a three way partnership will probably be created to speed up Pinewood’s entry into the North American DMS market.

Pendragon described this transaction as the end result of its strategic assessment initiated final yr. The corporate believes that the sale will generate vital worth for shareholders, with an estimated money dividend of roughly £240 million. Below the three way partnership, Lithia will subscribe to 279.4 million new odd shares in Pendragon, amounting to £30 million. Regardless of these modifications, Pendragon will retain its current itemizing on the London Inventory Alternate and rebrand as Pinewood Applied sciences Plc.

Observe: The Reuters article doesn’t present particular particulars about JV.

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