Pendragon has received an unsolicited preliminary proposal from its largest shareholder, Hedin Mobility Group, offering to buy the dealership group for about 406 million pounds ($429.67 million).
The cash offer, made on Sept. 21, valued London-listed Pendragon at 29 pence per share, nearly 28 percent higher than the company's closing price of 22.7 pence on Friday.
Hedin, which holds a 27 percent stake in the car dealer according to Refinitiv Eikon data, would be required to announce a firm intention to make an offer for the group or walk away by no later than Oct. 24, Pendragon said.