(Alliance News) - Pendragon PLC on Friday said it is considering a revised takeover offer by Hedin Mobility Group AG and PAG International Ltd.
The Nottingham, England-based automotive retailer said the new offer is for 32 pence per share, up 14% from the 28p per share offered on Wednesday, which Pendragon had rejected, calling it a fundamental undervaluation of the company.
Pendragon shares rose 12% to 30.20 pence on Friday afternoon in London.
Hedin Mobility is a Molndal, Sweden-based, European mobility enabler operating in fourteen countries, while PAG International is part of Penske Corp, an American diversified transportation services company.
Further, Pendragon said regarding the planned sale of its UK motor and leasing business to North American rival Lithia Motors Inc, it is required to hold a shareholder meeting to approve the transaction on October 6. So far, shareholders representing about 29% of the current issued share capital of Pendragon has irrevocably committed to vote in favour of the sale.
By Tom Budszus, Alliance News reporter
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