|
Pendragon PLC on Thursday said the Financial Conduct Authority approved a change of control of the firm’s finance and insurance services arm, a step on the way to the disposal of its wider UK motor business to Lithia Motors. The UK FCA backed the change of control of Pendragon Finance & Insurance Services Ltd. Pendragon said the approval means the sale of its UK motor business to Lithia will be completed on January 31. ‘Completion of the transaction will mark the beginning of the transformation of Pendragon into Pinewood Technologies, a pure-play software-as-a-service business, which operates the company’s dealer management software business. The board strongly believes that the growth prospects for the company will be enhanced materially as a result of becoming a standalone business, as well as through the strategic partnership with Lithia,’ Pendragon said. It intends to return 24.5 pence per share to shareholders once the deal goes through, by way of a special dividend. Earlier this year, Pendragon agreed to sell its entire UK motor business and leasing business to Lithia for £397 million. However, Lithia was not the only firm sizing up Pendragon. In September, the Nottingham, England-based automotive dealer Pendragon received an unsolicited proposal from AutoNation to acquire the company for 32 pence per share in cash. Also in September, Pendragon had received a revised takeover offer by Hedin Mobility Group AG and PAG International Ltd, or Penske, also worth 32 pence per share, up 14% from the 28p per share offered previously. Both AutoNation and the Hedin-Penske tie-up pulled out of a possible deal, however. As part of the deal, Lithia will rollout Pinewood in its existing 50 UK sites. As strategic pact between the duo will see Pinewood enter the North American market. The partnership will be ‘underpinned’ by Lithia injecting £30 million in Pinewood. Lithia will have the right to appoint two non-executives to the board of Pendragon, which will soon be renamed Pinewood Technologies, for so long as it has a more than 10% stake in the firm. Lithia Chief Operating Officer Chris Holzshu and Chief Technology Officer George Hines will join the Pinewood board. Pendragon Chief Financial Officer Mark Willis will step down and will be replaced by Oliver Mann. Pendragon shares closed 0.3% higher at 32.08 pence each in London on Thursday. Copyright 2023 Alliance News Ltd. All Rights Reserved.
|
