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Shame that PDG is rolling over and selling up. It's twice the size of Hedin. Another blow for the London stockmarket. PDG should be buying and growing. Not selling and shrinking.
Accordingly, the Board of Directors of Pendragon now announces that the Original General Meeting will be opened and adjourned immediately and Shareholders are asked not to attend the Original General Meeting. Instead, a supplementary circular is expected to be sent to Shareholders shortly, containing further details of the Transaction Amendments, the Resolutions, the Board's recommendation and a notice of general meeting in respect of a further General Meeting (the "Further General Meeting") at which Shareholders will be asked to approve the Resolutions (the "Supplementary Circular").
@pagey vote cut off is tomorrow, it's always a few days before meetings themselves to allow for share settlement. That's unless the company announce a postponement, which could happen but only if one of the other two bidders change their offers.
But market cap of the group including Pinewood is only £480m
Again from memory, I am sure I read in The Times that Zeus Capital had valued Pinewood ALONE at £400M.
Why is (new) Pinewood worth 10.6p a share - with £30 from Lithia for new shares it would have amarket cap of about £180m which seems high.
I'm not sure the vote is tomorrow, thought it was the 6th?
40p must be on the cards and then I can recover sanity after 18 years of hell!
They've been a bit cute with timing with vote going ahead tomorrow, they may get it over the line now. Did say ideal scenario would be a Lithia counter, and here we are so taking profits, market price more than good enough for me. Having said that could still be a bit of mileage in this with further counter bids, but being down to 11th hour seems a good time to derisk.
Good news and hopefully the other 2 bidders will also come back. In the unlikely event that we get other bids equal to this one I shall vote for the others because frankly the BOD had the cheek to recommend acceptance of their first low ball offer, Outrageous behaviour which frankly stinks imv.
Lithia improves cash portion, implied deal value now 35,4p
Despite having invested in the Stock Market for over 50 years I've never owned a share that was subject to three different bids.
I wasn't too keen on the original bid which entailed the selling off of the dealerships and the change of name and nature of the business and would have preferred a straightforward cash offer.
I am now puzzled that there are now two offers both for 32p. I previously commented that I thought that PDG might go for 35p but now consider that a higher price might be achievable. Having initially purchased at around 17p mid-year and topped up later at around 23p giving an average price of approx. 20.25p I'm staying on for the ride!
Was 16p in June and my average is 19.5p so should be pleased but have been saying for some time this is very under valued. With 3 hats already in the ring this surely will go higher.
If you look at their revenue vs mcap ratio you can clearly see that at these offers it's a steal for them and they could go much much higher
Looking at our bidders Autonation has a $6.64B market cap vs Lithia $7.89B, so these are cash rich proper big beasts slugging it out, we're just along for the ride. Hedin were so flakey last time I'm sure they regret that now they're facing these giants, but a threeway fight does mean unlike before one of these is sure to see it through to end.
Interestingly both companies share price has increased by more than 250% in last 5 years, with UK stocks in general and care dealers in particular being so unloved it's easy to see why they find value here.
With £271.9m in cash on the balance sheet, a positive cash flow of £64.8m in last half year, net assets of £308m even 40p (£559m) is a steal.
The company will clearly be sold now and to the highest bidder because otherwise hedin will vote against , imv.
And if Lithia are to succeed a simple offer of xp per share offer will be required - they can then sell or float Pinewood afterwards if they want to. Surely Lithia must have expected that with Hedin in the wings their complicated offer would be bound to fail but would make Hedin (and now Autonation) show their hand. I would expect (hope) that Lithia have a knock out bid between 35p and 40p ready to seal the deal.
Clearly a bid 35p is needed by however really wants to buy it
Ime now wondering if the AutoNation,s bid of 32p (same 32p as Hedin) is a way to get Hedin to up his offer, Maybe!
PDG wont rise until i sell my shares, That's what the markets waiting for, It certainly seems that way most times - lol.
Ime undecided, but very tempted to sell, I bought mine at 27p then bought lots more at 9p when they crashed.
19.5p is my average cost.
Apparently AutoNation has now put an offer in for PDG, but only for 32p, same as Hedin's offer,
I really don't understand whats going on or what the outcome will be, but i also remember last time a few months ago, I was absolutely gutted to say the least for not selling at 29p, luckily were here again. wheres that crystal ball !!!
26 September 2023
Pendragon PLC ("Pendragon" or the "Company")
Receipt of proposal from AutoNation
From ADVFN website.
The Board of Directors of Pendragon (the "Board") confirms that it has received an unsolicited proposal from AutoNation, Inc. ("AutoNation") to acquire the entire issued and to be issued share capital of Pendragon for 32 pence per share, in cash (the "AutoNation Proposal"). The AutoNation Proposal remains subject to a number of pre-conditions, including the completion of due diligence.
The Board will consider the AutoNation Proposal and will consult with its shareholders and provide an update in due course. deadline date 24th oct....
I don't really like the idea of the 16.7p per share offer, plus keep the unknown value of pinewood, because it is paid as a dividend, and they can be taxed, so could be a big prob, don't really understand so i would rather sell outright soon i think. Just like last time tho, ime hanging on for another penny or 2 lol.
This has become like an eBay auction. Should establish a firm floor now, with Hedin's 32p plus this new bid at 32p certainly lays down the gauntlet and a clear minimum.
And we could well get a counter from Lithia - if they really want it they can certainly afford to up their original bid with their whopping $8bn market cap.
Well a new bid has landed from Autonation, whoever they are, but will surely fail at 32p, when Hedin have stated they want 35p for their holding, so they will have to pay 35p plus to send Hedin packing, interesting.
Walkley,
As you said, tempted, well I decided this morning at 29.5p ish - I remember last time. Anyway a nice multi-bagger for me , now that is a change! Watch it rise over the next month of course.
When Pendragon got into a bidding war with Lookers over Reg Vardy back in 2006, the resulting to'n'fro pushed the price of Vardy through the roof and took it to 800p per share from a previous 'pre-bid' average of around 660p, such that Pendragon ended up paying millions more for the dealerships just to block Tony Bramall getting them back through Lookers. It would be nice to see a similar excitable bid jump happening here. Though probably only 5p or 6p upside, better than nothing. Each party has had full 'eyes-on' time to cover their due-diligence for any concerns they may have about pension shortfalls or any other unresolved legal cases. This is the last leg now.
"In the event that there is an announcement by a third party of a firm offer for the Company that the Board has indicated it will recommend, shareholders holding approximately 11.5% of the current issued share capital of Pendragon will cease to be bound by the terms of their irrevocable undertaking to vote in favour of the Lithia Transaction."