Pinewood Technologies rockets as board give nod to Ridgeview bid

Pinewood Technologies Group PLC (LSE:PINE, OTCQX:PINWF, FRA:0PD0) shares jumped 32% to 416p after the automotive software company said it was minded to recommend a £545 million takeover proposal from technology investor Ridgeview Partners.

Ridgeview has proposed paying 448p in cash for each Pinewood.AI share, a 43% premium to Thursday's closing price of 314p. The proposal is also 64% above the company's average share price over the preceding three months.

Pinewood's board said the possible offer provided shareholders with an opportunity to secure immediate cash at a valuation that might otherwise take several years to achieve and would depend on the successful execution of its growth strategy.

Shareholders would alternatively be able to roll some or all of their investment into an unlisted vehicle managed by Ridgeview. This option would be limited to shares worth a combined £250 million and could be scaled back if demand exceeds the maximum allocation.

Investors holding 48.7% of Pinewood's shares have indicated support for the possible offer, while holders of 32.8% intend to choose the rollover option.

In 2023, Pinewood, then called Pendragon, was in talks with several groups about a takeover, after selling its UK retail business to another US dealer group Lithia & Driveway.

Pinewood's remaining business provides software to automotive retailers and manufacturers, with Ridgeview saying private ownership would give the company greater flexibility to accelerate its North American expansion and pursue acquisitions.

The proposal remains non-binding and there is no certainty that a firm offer will follow. Ridgeview has until 21 August to announce a firm bid or withdraw.