LAD - Lithia & Driveway raises bid for Pendragon's UK motor divisions

2023-10-02 13:43:20 ET

Lithia & Driveway ( NYSE: LAD ) on Monday said it has upped its offer to buy British auto dealer Pendragon's UK motor division and vehicle management division.

Under the revised terms, Lithia Motors has increased the total cash consideration by 42% to £397 million.

Earlier in September, Lithia Motors partnered with Pinewood Technologies and said it will offer £280 million for the business.

“The combined value of the consideration to Pendragon existing shareholders is initially equivalent to approximately 35.4 pence per share with significant upside expected from the strategic partnership and North American joint venture opportunity,” the company said.

Lithia Motors added the additional cash consideration is expected to increase the cash dividend payable to Pendragon's existing shareholders 49% to 24.5 pence per share, while existing Pendragon shareholders will continue to retain about 83.3% ownership in Pinewood Tech.

The acquisition of Pendragon Vehicle Management will add a highly profitable fleet management services business to Lithia Motors and will round out the automotive retailer’s presence in the UK market.

Lithia Motors has also increased the overall certainty of the transaction by removing certain completion conditions.

More on Lithia & Driveway

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• Lithia Motors: Unveiling Its Strategy For Dominating The Automotive Industry
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• Lithia & Driveway to acquire Pinewood Technologies' Pendragon UK motor divisions

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