Motor dealer Pendragon (LON: PDG) is selling its entire core business to North American automotive retailer Lithia Motors for £250m. This will turn Pendragon into a software business and there could be a £240m payout to shareholders, which is not much less than the market capitalisation at the end of last week. The share price jumped 26% to 23.275p.
The acquiror will take on all debt in the business, as well as pension obligations. The deal is subject to shareholder approval.
Lithia Motors is also subscribing £30m for 279.4 million shares and will roll out Pendragon’s Pinewood de...
