AutoNation Inc. has adopted two rivals into the bidding warfare for Pendragon, the big auto retailer in the UK that only a week in the past appeared poised to be offered to Lithia Motors Inc.
In a Tuesday regulatory submitting, Pendragon mentioned it acquired an unsolicited proposal from AutoNation to amass the corporate for 32 pence, or 39 cents, per share in money.
AutoNation, additionally in a regulatory submitting on Tuesday, confirmed that it submitted a non-binding preliminary proposal for Pendragon however mentioned there may be no certainty as as to whether it can make a binding provide for Pendragon.
AutoNation mentioned it can make a “additional announcement if and when acceptable.” An AutoNation spokesperson referred Automotive Information to the 8-Okay submitting.
Reuters valued the AutoNation provide at $544.2 million.
Pendragon, within the submitting, mentioned its board will take into account the proposal and “present an replace in the end.”
Lithia on Sept. 18 mentioned it deliberate to purchase Pendragon’s dealership and fleet companies in a $350 million deal. As a part of that deal, Pinewood, Pendragon’s dealership administration system, could be remodeled right into a standalone software program firm referred to as Pinewood Applied sciences. Lithia would achieve a few one-sixth possession stake in that entity. Lithia and Pinewood plan to type a three way partnership to convey a DMS to North America.
Pendragon final week mentioned it’s required to carry a shareholders assembly Oct. 6 to approve or reject Lithia’s proposal.
Pendragon is led by CEO Invoice Berman, the previous AutoNation COO. Beneath Lithia’s proposal, Berman would keep on as CEO of Pinewood.
Simply two days after Lithia’s deal was introduced, Pendragon mentioned it acquired a joint provide from Penske Automotive Group Inc., by means of its PAG Worldwide subsidiary, along with Sweden’s Hedin Mobility Group. Pendragon rejected that deal.
Then, on Friday, Penske and Hedin submitted a revised provide to purchase Pendragon, upping the value from the rejected 35 cents per share to 39 cents per share. Reuters valued the second Penske-Hedin bid at about $548 million. Pendragon mentioned it’s contemplating that proposal.
However not like the Penske bid, AutoNation seems to creating its provide alone.
If its bid proves profitable, AutoNation could be the fourth publicly traded auto retailer with U.Okay. dealerships, becoming a member of Lithia, Penske and Group 1 Automotive.
Pendragon has 160 retail places throughout the U.Okay., most of that are new-vehicle dealerships.
A Lithia spokesperson declined to remark.
Rob Kurnick Jr., president of Penske Automotive Group, declined to debate particulars about Penske’s pursuit of Pendragon.
“Clearly, that is not one thing I can discuss loads about,” Kurnick instructed Automotive Information on the Reynolds and Reynolds retail summit occasion on Tuesday in Indianapolis, the place he spoke about different trade developments. However, he famous, Penske operates a considerable amount of its enterprise within the U.Okay. and he mentioned that Pendragon “has been round as a peer of ours for a very long time.”
“We watch all of these firms very carefully,” he mentioned.
AutoNation, of Fort Lauderdale, Fla., ranks No. 2 on Automotive Information‘ listing of the highest 150 dealership teams primarily based within the U.S., with retail gross sales of 229,971 new autos in 2022. Lithia is No. 1 on that listing and Penske is No. 3.
Mark Hollmer and Reuters contributed to this report.