Pendragon says approval received from FCA for Lithia deal

In a notice to the London Stock Exchange, Pendragon (PDGNF) stated: “Pendragon is pleased to announce that the FCA Conditions have now been satisfied after both Pendragon and Lithia received approval from the FCA for the change of control of Pendragon Finance and Insurance Services Limited. As a result, and in accordance with the terms of the Sale Agreement, the completion date for the sale of the entire issued share capital of Pendragon NewCo 2 Limited, the entity that holds, either directly or indirectly through its wholly-owned subsidiaries, Pendragon’s UK motor business (sale and servicing of vehicles in the UK) and leasing business (fleet and contract hire provider and used vehicle supply), to Lithia is expected to take place, following the satisfaction of the remaining customary completion conditions, on 31 January 2024 alongside the completion of the Subscription to Lithia and entry into the Strategic Partnership with a wholly-owned subsidiary of Lithia Motors, Inc.. Completion of the Transaction will mark the beginning of the transformation of Pendragon into Pinewood Technologies, a pure-play SaaS business, which operates the Company’s dealer management software business. The Board strongly believes that the growth prospects for the Company will be enhanced materially as a result of becoming a standalone business, as well as through the Strategic Partnership with Lithia.”