The group behind the Evans Halshaw and Stratstone dealerships has extended its “put-up or shut-up deadline” to a Swedish business behind a £400 million bid for it.
The Swedish Hedin Mobility Group AB had been given until today (November 21) to say if it was going ahead with its offer for Nottingham-based Pendragon group.
A new deadline of 5pm on December 9 has now been set with Hedin’s due diligence “now substantially complete”.
Hedin approached Pendragon in September over a possible deal to buy its entire share capital at 29 pence per share. Today shares in Pendragon were up almost 7 per cent to 28.8p on news it was still interested.
Only last month Pendragon put out results saying it had outperformed the sluggish UK market with its new car sales were up 14.2 per in July, August and September, compared to a year before.
Margins were also up on its new car sales – at £2,597 per vehicle, up £743.
Hedin – which operates 240 dealerships in markets such as Sweden, Germany, and the Netherlands – has been interested in Pendragon since at least the spring, and is the biggest Pendragon shareholder with a 27.5 per cent stake.
Pendragon previously handed Hedin a deadline of October 24 to submit a formal offer or walk away. It said the “put up or shut up” deadline was later extended to November 21 to allow Hedin to finalise necessary due diligence.
However, now Pendragon has said Hedin has still not confirmed if it will table the offer but has been granted a further extension.
In a short market statement, made with the consent of Hedin, Pendragon said: “There can be no certainty that a firm offer will be made.
“A further announcement will be made in due course.”
