Sept 18 (Reuters) – Pendragon, a British automotive company, has announced that it will acquire its British car and leasing business for a total of 250 million pounds ($310 million). This move comes as part of their strategic alliance with Lithium, a company specializing in expansion. As part of this partnership, Pendragon will also be expanding its dealer management software (DMS) business, Pinewood, into Lithia Motors’ 50 existing UK locations. This deal is expected to maximize the value of Pendragon’s strategic review that was announced last year. Additionally, the company’s board of directors believes that it will result in an attractive cash dividend of approximately 3 million yen for shareholders.
Nottingham-based Pendragon further stated that this joint venture is supported by the subscription of 279.4 million new ordinary shares in Pendragon by Lisur, one of North America’s largest car retailers. This subscription is valued at £30 million. Despite the sale and offer, Pendragon will maintain its existing listing on the London Stock Exchange and change its name to Pinewood Technologies. The exchange rate at the time of this announcement was calculated at US$1 = 0.8065 pounds. (Reporting by Jose Coilparambil; Editing by Subranshu Sahu and Toby Chopra)