After outbidding Lookers to take over Reg Vardy, Britain’s largest car dealer group, Pendragon has told Reuters that it expects to take over management control of Vardy next week.
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Pendragon chief executive Trevor Finn told the news agency that, following a share purchase on Wednesday that raised its stake to more than 40%, “technically, we will have management control next week.”
Pendragon has agreed to buy Reg Vardy for GBP506m, or GBP9.00 per share.
Reuters also reported that Pendragon has increased its profits by 11.7% for 2005. Profit before tax rose to GBP59.3m from GBP53.1m a year earlier as sales rose 3% to GBP3.3bn.
Pendragon owns and operates 275 franchised dealers selling Ford, Vauxhall and Nissan models and, following its acquisition of CD Bramwell in 2005, it also is in luxury brands, including Ferrari, Aston Martin and Porsche.
Last month Pendragon said it had approached rival bidder Lookers about potential consolidation. Lookers rejected Pendragon’s proposal.
