Pendragon has unanimously rejected an unsolicited proposal by Hedin Mobility and Penske two days after it declared it was promoting its Evans Halshaw, status Stratstone dealerships and on-line CarStore enterprise to US motor retailer big Lithia Motors in an accepted £250 million deal.

Hedin Mobility Group made an analogous supply final 12 months which valued it at greater than £400 million that was subsequently withdrawn.

Sytner is the UK’s largest automotive retail group within the UK, has greater than 100 dealerships nationwide and its portfolio ranges from Audi and BMW to Ferrari and Lamborghini.

Hedin has been increasing throughout Europe, shopping for Toyota and Mercedes dealerships in Belgium, and in Switzerland the place it’s now the second greatest BMW and Mini dealership

Pendragon’s board has already agreed a proposal with Lithia, topic to shareholder approval, which might unload its leasing and motor dealership companies to Lithia UK Holding, the UK division of NYSE-listed Lithia.

As a part of the accepted supply by Lithia Motors, Pendragon can be planning a partnership to roll out its seller administration software program arm, Pinewood, to Lithia’s 50 UK websites and North American operations. If these offers are accomplished by the top of the 12 months the slimmed-down Pendragon will stay listed on the London Inventory Alternate and alter its title to Pinewood Applied sciences.

The acquisition, which follows Lithia’s acquisitions of Jardine Motors and Arden Group already this 12 months, would imply Lithia would occupy second spot within the AM100, with a UK enterprise producing greater than £5 billion revenues.

In an announcement to the London Inventory Alternate, Pendragon mentioned that Hedin and US-based Penske had rejected the 28 pence share supply, stating that it basically undervalued the corporate and was due to this fact “not in the very best pursuits of shareholders or different stakeholders”.

“The board is worked up concerning the future prospects for Pendragon on account of the transaction introduced with Lithia Motors on 18 September 2023, which, if accomplished, will ship a considerable money dividend and create a pure play software program as a service enterprise with an accelerated development plan and a strategic partnership to enter North America.”

.Underneath market guidelines PAG and Hedin have till 5pm on October 18 to make a agency supply or stand down.