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Pendragon PLC’s largest shareholder Hedin Mobility Group AB on Friday said it does not intend to make a takeover offer, three months after publicly floating the idea.
Sweden-based mobility provider Hedin gave as reasons for the change of heart challenging market conditions and an uncertain economic outlook.
In response, Pendragon said it is confident about its long-term prospects and said the process ‘highlighted the value of Pendragon and the board will continue to explore opportunities to maximise value for its shareholders’.
Following Hedin’s announcement, Pendragon is no longer in an offer period under UK takeover rules.
In September, Hedin approached the Nottinghamshire-based car dealership chain with a takeover offer, offering 29 pence per Pendragon share, giving it an equity valuation of around £405 million. Back then, Hedin said it would not consider or accept any offers for its current shareholding in Pendragon, saying it believes in the UK firm’s long-term potential.
Pendragon shares fell 27% to 20.67 pence each in London on Friday morning following the announcement that no offer will be made.
In both October and November, Pendragon agreed to extend the put-up-or-shut-up deadline for Hedin, under which a company must announce a firm intention to make an offer or that it does not intend to make an offer.
By Tom Budszus, Alliance News reporter
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