Pendragon extends deadline for possible offer from Hedin Group

Pendragon announced a further extension to the put-up-or-shut-up deadline on a possible takeover by Hedin Mobility Group on Monday.

The company first announced on 26 September that it had received an unsolicited, preliminary and conditional proposal from Hedin Group over a possible cash offer for the entire issued and to-be-issued share capital of Pendragon, at 29p per share.

On 24 October, Pendragon confirmed that the deadline had been extended to 21 November to allow Hedin Group to finalise its necessary due diligence, which on Monday it said was “substantially complete”.

“In order to finalise the necessary transaction documentation the company has requested, and the Takeover Panel has consented to, an extension to the date by which Hedin Group is required either to announce a firm intention to make an offer for Pendragon or to announce that it does not intend to make an offer,” the Pendragon board said in its statement.

It said such an announcement now needed to be made by 1700 GMT on 9 December.

The deadline could still be further extended by the board of Pendragon, with the consent of the Takeover Panel.

“There can be no certainty that a firm offer will be made,” the directors cautioned, adding that a further announcement would be made in due course.

At 0845 GMT, shares in Pendragon were up 7.23% at 28.95p.

Reporting by Josh White for Sharecast.com.