Sweden's Hedin makes $430M offer for Pendragon

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.

Pendragon is Europe's ninth-largest dealership group by revenue, according to Automotive News Europe's 2021 Guide to Europe's biggest dealer groups. It has 142 franchise points in the UK.

Hedin ranks as No. 13 in the guide. Based in Molndal, Sweden, the group operates more than 230 car dealerships in northern and western European countries.

The group is partnering with BYD to launch European sales of electric vehicles from China's largest EV manufacturer.

U.S. auto retail giant Lithia Motors also made an offer for Pendragon that was later withdrawn, according to media reports.