Shares in Pinewood Technologies surged 32% to 416p on Monday after the automotive software group received a £545 million (approximately $727 million) takeover proposal from Ridgeview Partners.
Ridgeview's proposed cash offer price for Pinewood shares
The 448p-per-share offer represents a 43% premium to Thursday's closing price of 314p and is 64% above Pinewood's average share price over the preceding three months.
Pinewood's board is minded to recommend the offer, according to a statement. The company, which previously operated as Pendragon, sold its UK retail business to Lithia & Driveway in 2023 and now provides software to automotive retailers and manufacturers.
Private ownership would give Pinewood greater flexibility to accelerate North American expansion and pursue acquisitions.
Shareholders representing 48.7% of Pinewood's shares support the offer, while 32.8% intend to choose a rollover option that allows them to invest in an unlisted vehicle managed by Ridgeview, limited to shares worth £250 million. The proposal is non-binding, and Ridgeview has until 21 August to announce a firm bid or withdraw.