AutoNation joins Pendragon bidding war

AutoNation Inc. has adopted two rivals into the bidding war for Pendragon, the big vehicle retailer in the United Kingdom that just a 7 days back seemed poised to be bought to Lithia Motors Inc.

In a Tuesday regulatory submitting, Pendragon claimed it gained an unsolicited proposal from AutoNation to receive the organization for 32 pence, or 39 cents, for each share in dollars.

AutoNation, also in a regulatory submitting on Tuesday, verified that it submitted a non-binding preliminary proposal for Pendragon but claimed there can be no certainty as to no matter whether it will make a binding give for Pendragon.

AutoNation claimed it will make a “additional announcement if and when correct.” An AutoNation spokesperson referred Automotive Information to the eight-K submitting.

Reuters valued the AutoNation give at $544.two million.

Pendragon, in the submitting, claimed its board will think about the proposal and “offer an update in thanks study course.”

Lithia on Sept. 18 claimed it planned to buy Pendragon’s dealership and fleet businesses in a $350 million offer. As portion of that offer, Pinewood, Pendragon’s dealership administration procedure, would be remodeled into a standalone program organization termed Pinewood Systems. Lithia would attain about a just one-sixth possession stake in that entity. Lithia and Pinewood system to type a joint enterprise to deliver a DMS to North The united states.

Pendragon previous 7 days claimed it is needed to keep a shareholders conference Oct. six to approve or reject Lithia’s proposal.

Pendragon is led by CEO Monthly bill Berman, the former AutoNation COO. Less than Lithia’s proposal, Berman would remain on as CEO of Pinewood.

Just two times soon after Lithia’s offer was declared, Pendragon claimed it gained a joint give from Penske Automotive Group Inc., by means of its PAG Worldwide subsidiary, alongside one another with Sweden’s Hedin Mobility Team. Pendragon rejected that deal.

Then, on Friday, Penske and Hedin submitted a revised offer to acquire Pendragon, upping the value from the turned down 35 cents for each share to 39 cents for each share. Reuters valued the 2nd Penske-Hedin bid at about $548 million. Pendragon claimed it is contemplating that proposal.

But not like the Penske bid, AutoNation seems to generating its give on your own.

If its bid proves profitable, AutoNation would be the fourth publicly traded vehicle retailer with U.K. dealerships, signing up for Lithia, Penske and Team one Automotive.

Pendragon has 160 retail destinations throughout the U.K., most of which are new-motor vehicle dealerships.

A Lithia spokesperson declined to remark.

Rob Kurnick Jr., president of Penske Automotive Team, declined to talk about specifics about Penske’s pursuit of Pendragon.

“Certainly, which is not a thing I can converse a great deal about,” Kurnick explained to Automotive Information at the Reynolds and Reynolds retail summit celebration on Tuesday in Indianapolis, the place he spoke about other market traits. But, he famous, Penske operates a big quantity of its small business in the U.K. and he claimed that Pendragon “has been about as a peer of ours for a prolonged time.”

“We enjoy all of those people providers quite carefully,” he claimed.

AutoNation, of Fort Lauderdale, Fla., ranks No. two on Automotive Information‘ list of the top 150 dealership groups dependent in the U.S., with retail profits of 229,971 new autos in 2022. Lithia is No. one on that checklist and Penske is No. three.

Mark Hollmer and Reuters contributed to this report.

The post AutoNation joins Pendragon bidding war appeared first on Cars News Magazine.


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