U
S agency Lithia has hiked its provide to purchase rival Pendragon’s UK motor and leasing enterprise.
It comes amid a three-way bidding battle additionally involving US automotive retail large AutoNation and Sweden’s Hedin, which already owns a 28% stake in Pendragon .
Last month, Pendragon stated it had agreed a deal value round £280 million, or 27.4p per share, to promote the UK dealership operation to Lithia.
However, final week AutoNation put in an unsolicited takeover proposal value round £447 million or 32p a share in money to purchase the entire firm.
Hedin, which owns a 28% stake, then launched a joint unsolicited bid with Penske, which owns Britain’s greater motor seller, Sytner.
Pendragon rejected an preliminary 28p per share strategy from the pair however then obtained an extra proposed bid value 32p per share and stated it will take into account the sweetened provide.
We are very excited in regards to the energy of our strategic partnership and increasing the Pinewood enterprise not simply within the UK however around the globe
On Monday, Lithia stated it had now sweetened its strategy for the UK operation to 35.4p, in a transfer value £397 million.
The deal would additionally see Pendragon roll out its seller administration software program arm, referred to as Pinewood , to Lithia’s UK websites and to enter the North American market.
The agency would stay listed on the London Stock Exchange and alter its identify to Pinewood Technologies.
Attempts by AutoNation and Hedin for a full takeover have been hampered by a necessity for 75% approval from shareholders.
However, the Lithia deal solely wants majority approval with a purpose to progress.
Bryan DeBoer, Lithia president and chief government officer, stated: “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.”
