BRIEF-Pendragon To Sell UK Motor, Leasing Business To Lithia Motors for 250 Mln Stg

Pendragon PLC: * PROPOSED DISPOSAL, TRANSITION & PARTNERSHIP

* PROPOSED DEAL FOR GROSS AGGREGATE CONSIDERATION OF £250 MILLION * PROPOSED DEAL FOR 16.5 PENCE IN CASH

* PROPOSED DEAL FOR RETAINED C.83.3% OWNERSHIP IN CONTINUING PENDRAGON BUSINESS VALUED INITIALLY AT C.10.3 PENCE ON A FULLY-DILUTED BASIS * PROPOSED DEAL FOR INDIRECT INTEREST IN NORTH AMERICAN JOINT VENTURE VALUED INITIALLY AT C.0.6 PENCE

* DISPOSAL OF UK MOTOR AND PVM, TRANSITION TO PINEWOOD TECHNOLOGIES PLC AND STRATEGIC PARTNERSHIP WITH LITHIA * SHAREHOLDERS WILL INITIALLY RECEIVE EQUIVALENT OF ABOUT 27.4 PENCE PER SHARE WITH FURTHER SIGNIFICANT UPSIDE EXPECTED FROM PARTNERSHIP

* PENDRAGON WILL REMAIN LISTED AND CHANGE ITS NAME TO PINEWOOD TECHNOLOGIES PLC * BUSINESS TO BE LED BY BILL BERMAN AS CEO, AND OLIVER MANN AS CFO

* FY27 TARGET FOR UNDERLYING EBITDA OF PINEWOOD TECHNOLOGIES OF £27 MLN FROM EXISTING BUSINESS * IMMEDIATELY FOLLOWING COMPLETION OF DEAL, LITHIA WILL OWN 16.67 PER CENT. OF PINEWOOD TECHNOLOGIES

* LITHIA WILL HAVE RIGHT TO APPOINT TWO NON-EXECUTIVE DIRECTORS TO CO'S BOARD POST COMPLETION Source text for Eikon: Further company coverage: