Pinewood minded to recommend £545m Ridgeview offer, shares surge

(Sharecast News) - Shares of Pinewood Technologies surged on Monday after the software company said it was minded to recommend a �545m takeover proposal from technology investor Ridgeview Partners.

In a statement late on Friday, Pinewood said Ridgeview had made a possible cash offer of 448p per share, which is a 43% premium to the closing share price of 314p a day earlier.

Chairman Ian Filby said: "Since becoming an independent software business in 2024, Pinewood.AI has delivered significant strategic and operational progress, strengthening its position as a leading global automotive technology platform.

"While the board remains confident in the company's long-term prospects, we recognise that the next phase of Pinewood.AI's growth will require continued investment, innovation and execution at scale. Against that backdrop, the board believes it is right to engage constructively with Ridgeview Partners, who bring deep technology expertise, long-term capital and a shared ambition for the business.

"Having carefully considered the proposal received, the board has indicated that it would be minded to recommend an offer on these terms, should a firm intention to make an offer be announced."

At 1053 BST, the shares were up 34% at 421p.

Russ Mould, investment director at AJ Bell, said: "The shares had taken a knock earlier this year when another private equity group, Apax, tabled a 500p-per-share bid only to walk away less than a month later.

"The new bid is lower than that one, at 448p a share, so it will be interesting to see if shareholders are willing to accept. Lithia Motors, the buyer of the car dealerships two years ago, still has a near one-third stake in AIM-quoted Pinewood, so it will have a major say in whether the deal goes ahead, and the US firm seems to be supportive of the approach."

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