Brief: Pendragon To Sell UK Motor, Leasing Business To Lithia Motors for 250 Mln Stg

Lithia Motors

18/09/2023 07:01

Sept 18 (Reuters) - Pendragon PLC  PDG.L :
    * PROPOSED DISPOSAL, TRANSITION & PARTNERSHIP
    * PROPOSED DEAL FOR GROSS AGGREGATE CONSIDERATION OF £250
MILLION
    * PROPOSED DEAL FOR 16.5 PENCE IN CASH
    * PROPOSED DEAL FOR RETAINED C.83.3% OWNERSHIP IN CONTINUING
PENDRAGON BUSINESS VALUED INITIALLY AT C.10.3 PENCE ON A
FULLY-DILUTED BASIS
    * PROPOSED DEAL FOR INDIRECT INTEREST IN NORTH AMERICAN
JOINT
VENTURE VALUED INITIALLY AT C.0.6 PENCE
    * DISPOSAL OF UK MOTOR AND PVM, TRANSITION TO PINEWOOD
TECHNOLOGIES PLC AND STRATEGIC PARTNERSHIP WITH LITHIA
    * SHAREHOLDERS WILL INITIALLY RECEIVE EQUIVALENT OF ABOUT
27.4
PENCE PER SHARE WITH FURTHER SIGNIFICANT UPSIDE EXPECTED FROM
PARTNERSHIP
    * PENDRAGON WILL REMAIN LISTED AND CHANGE ITS NAME TO
PINEWOOD
TECHNOLOGIES PLC
    * BUSINESS TO BE LED BY BILL BERMAN AS CEO, AND OLIVER MANN
AS CFO
    * FY27 TARGET FOR UNDERLYING EBITDA OF PINEWOOD TECHNOLOGIES
OF
£27 MLN FROM EXISTING BUSINESS
    * IMMEDIATELY FOLLOWING COMPLETION OF DEAL, LITHIA WILL OWN
16.67
PER CENT. OF PINEWOOD TECHNOLOGIES
    * LITHIA WILL HAVE RIGHT TO APPOINT TWO NON-EXECUTIVE
DIRECTORS TO
CO'S BOARD POST COMPLETION

Source text for Eikon:  ID:nRSR7425Ma 
Further company coverage:  PDG.L 

 ((Reuters.Briefs@thomsonreuters.com;))