Car dealer Pendragon strikes takeover deal with Hedin Group
THE board of one of Britain’s biggest car dealers is poised to back a takeover by a Swedish automotive tycoon in a £400m take-private deal.
City sources said that members of Pendragon’s board have indicated to Anders Hedin that they will recommend shareholders approve his 29p-a-share approach.
The board’s recommendation could be announced as early as tomorrow ahead of a “put up or shut up” deadline.
With executives this weekend putting the final touches to the deal, sources cautioned that a short extension to the deadline may be required before the directors’ approval is confirmed. The takeover would then need to be backed by Pendragon’s shareholders.
Separate City sources said the deal with Hedin Group could yet be gatecrashed. There is speculation that Constellation Automotive, the group behind Webuyanycar and Cinch, could launch a rival bid.
Constellation Automotive is led by chairman Avril Palmer-Baunack, who previously led the board of Stobart. The Hampshirebased company has been at the forefront of the consolidation within the UK’s fragmented car dealership market.
It acquired listed car dealer Marshall a year ago and has taken a 20pc stake in Lookers, another of the UK’s listed dealerships.
Although a swoop on Pendragon, which operates under the Evans Halshaw, Stratstone and CarStore brands, would attract the interest of competition regulators, such a deal would only leave Constellation with around 20pc of the UK car dealership market, sources added.
Pendragon, Hedin Group, and Constellation Automotive declined to comment.