Pendragon to sell UK motor, leasing businesses to Lithia for $310 mln (updated)

Lithia Motors

18/09/2023 07:26

(Adds details on strategic partnership in paragraphs 2 and 4)
       Sept 18 (Reuters) - British automotive retailer
Pendragon  PDG.L  said on Monday it would sell its entire UK
motor and leasing businesses to Lithia UK Holding for a gross
aggregate consideration of 250 million pounds ($310 million).
    The companies also agreed on the terms of a partnership
including the rollout of Pinewood, the British firm's dealer
management software (DMS) business, to Lithia Motors'  LAD.N 
existing 50 UK sites and the creation of a joint venture to
speed up Pinewood's entry into the North American DMS market.
    "The transaction is the value-maximising conclusion of the
strategic review announced by Pendragon last year and the board
believes that it will deliver an attractive cash dividend to
shareholders of c.£240 million," London-listed Pendragon said in
a statement.
    As part of the transaction, Pendragon's Pinewood division
will become a standalone entity, retaining existing listing on
the London Stock Exchange.     
    
($1 = 0.8065 pounds)

 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Subhranshu Sahu)
 ((abyjose.koilparambil@thomsonreuters.com; +919986528692))