Shares of Pendragon PLC (PDG.L) were losing around 22 percent in the early morning trading in London after Hedin Mobility Group AB announced that it does not intend to make a takeover offer for the used car dealer company. The decision was taken due to challenging market conditions and the uncertain economic outlook.
In response, Pendragon said its Board remains confident about the long-term prospects, and that it will continue to explore opportunities to maximise value.
The company also said, "The economic backdrop remains challenging, however the Board continues to expect to deliver group underlying profit before tax in line with expectations for the current financial year."
Pendragon on September 26 announced that it has received the unsolicited, preliminary and highly conditional possible cash offer from Hedin Group at 29 pence per share in cash. On October 13, the Board granted due diligence access to Hedin Group in order to explore whether it could make a firm offer.
Pendragon now said it is no longer in an offer period.
In London, Pendragon shares were trading at 21 pence, down 25.51%.
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