Hedin ditches pursuit of Pendragon, cites uncertain outlook

Hedin said on Friday that it would no longer pursue a takeover of car dealership Pendragon, citing an uncertain outlook.

"Given the challenging market conditions and uncertain economic outlook, Hedin confirms that it does not intend to make an offer for Pendragon," it said in a very brief statement.

Pendragon had announced in September that it had received an unsolicited, preliminary and highly conditional possible cash offer from Hedin at 29p per share.

The company said on Friday that it remains confident about its long-term prospects.

"This process has highlighted the value of Pendragon and the board will continue to explore opportunities to maximise value for its shareholders," it said.

"As announced on 25 October 2022, there is a clear path to deliver the strategy to transform automotive retail through digital innovation and operational excellence. The economic backdrop remains challenging, however the board continues to expect to deliver group underlying profit before tax in line with expectations for the current financial year."

At 0815 GMT, Pendragon shares were down 27% at 20.57p.