Pendragon Publicizes Sale of UK Motor and Leasing Companies to Lithia for $310 million: UPDATE 2

On September 18, Pendragon, a British automotive firm, introduced its plans to promote its UK motor and leasing companies to Lithia for a complete of £250 million ($310 million). Together with this sale, Pendragon may also enter right into a strategic partnership with Lithia to broaden its seller administration software program (DMS) enterprise into North America. As a part of the partnership, Pinewood, Pendragon’s DMS enterprise, will likely be rolled out to Lithia Motors’ present 50 UK websites. Moreover, a three way partnership will likely be created to speed up Pinewood’s entry into the North American DMS market.

Pendragon described this transaction as the end result of its strategic evaluation initiated final yr. The corporate believes that the sale will generate important worth for shareholders, with an estimated money dividend of roughly £240 million. Beneath the three way partnership, Lithia will subscribe to 279.4 million new peculiar shares in Pendragon, amounting to £30 million. Regardless of these adjustments, Pendragon will retain its present itemizing on the London Inventory Trade and rebrand as Pinewood Applied sciences Plc.

Notice: The Reuters article doesn’t present particular particulars about JV.