US dealer group Lithia has significantly increased its offer for Pendragon. Lithia, one of the three groups bidding for Pendragon, has upped its total offer to £397 million, up from the original £280m.
The new offer comes five days ahead of a proposed vote on the deal, due this Friday. This vote has now been shelved and will be rescheduled due to the number of offers including two from a combined Penske and Hedin Mobility group as well as an offer from the largest US group AutoNation.
The original Lithia offer of £250m for the motor retail side of Pendragon has been increased to £367m. The £30m investment in the Pinewood software business remains unchanged. Under the Lithia bid, Pinewood will remain as a PLC, which will also take the software arm’s name.
Under the new deal, existing shareholders will receive a 24.5 pence a share pay out as well as retaining 83.3% of the software firm.
Pendragon will now write to shareholders to set up a new meeting to vote on the offers. This is expected in the last quarter of 2023.
Commenting on the increased offer Bryan DeBoer (pictured), Lithia & Driveway president & CEO, said: “Our transaction provides considerable value and certainty for Pendragon shareholders while unlocking Pinewood’s ability and massive potential as a standalone, pure-play SaaS business. We have a pathway to reach completion quickly, proven experience in successfully integrating businesses and great growth opportunities for the Pendragon employees. We are very excited about the strength of our strategic partnership and expanding the Pinewood business not just in the UK but around the world.”