By Joe Hoppe
Pendragon said it has received an unsolicited proposal from AutoNation to acquire its entire share capital for 32 pence per share in cash, valuing the business at around 448 million pounds ($547 million).
The U.K. motor dealership said used and new cars seller AutoNation’s proposal remains subject to a number of preconditions, including completion of due diligence, and there can be no certainty any firm offer will be made nor to the terms of any offer.
Pendragon shares rose last Wednesday after it said it rejected a takeover bid from Hedin Mobility Group and Penske Automotive Group subsidiary PAG International, with a proposal of 28 pence a share for its entire share capital of 1.4 billion shares.
On Friday, the company said it had received a further unsolicited proposal from Hedin Mobility and PAG, proposing 32 pence a share.
In September 2022, Hedin Mobility made a GBP405.1 million takeover offer, or 29 pence a share, which was later abandoned by the Swedish mobility provider due to challenging market conditions and an uncertain economic outlook.
At the beginning of last week, Pendragon said it will sell its entire U.K. motor business and leasing business to Lithia Motors for GBP250 million, change its name and embark on a strategic partnership with Lithia.
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