The proposed buyout would make PAG privately held, owned by Penske Corporation and Mitsui.
- PAG shareholders, excluding Penske Corporation, Mitsui & Co. and other members of the investor group, will receive $212 per share in cash, representing an 8.84% premium to the stock’s Oct. 14 closing price.
- Penske Corporation will own approximately 64% of the privately held company, with Mitsui & Co. holding the remaining 36% after the deal closes.
- Separately, PAG raised its quarterly dividend by 1.4% to $1.46 per share, equivalent to an annualized rate of $5.84.
Penske Automotive Group (PAG) shares rallied around 8% in premarket trading on Thursday after the company agreed to be taken private by Penske Corporation and Mitsui & Co. in a deal valuing the company at approximately $16.3 billion.
Roger Penske, chair and CEO of Penske Automotive Group, called the transaction “an important next chapter for PAG,” saying the company would work with Mitsui to build on its operational excellence, drive innovation and expand its business through new opportunities and collaborative projects.
Shareholders To Receive $212 Per Share In Cash
Under the agreement, PAG shareholders will receive $212 per share in cash, excluding Penske Corporation, Mitsui & Co. and other members of the investor group.
The offer represents an 8.84% premium to PAG’s closing price on Oct. 14, the last trading day before the deal was announced.
The deal will be carried out through Motown Acquisition Corp., an entity owned by Penske Corporation and Mitsui. Upon completion, Penske will own approximately 64% of the privately held company, while Mitsui will hold the remaining 36%.
Deal Expected To Close In First Quarter Of 2027
The transaction is expected to close in the first quarter of 2027, subject to regulatory approvals and shareholder votes. Approval requires a majority of outstanding shares entitled to vote, as well as a majority of votes cast by unaffiliated shareholders.
Once the transaction closes, PAG shares will no longer trade on the New York Stock Exchange.
Penske Automotive is set to report its third-quarter results before the market opens on Oct. 28. Analysts tracked by Fiscal AI expect revenue of $8.39 billion and earnings per share of $3.46.
Penske Automotive Raises Quarterly Dividend 1.4%
Separately, Penske Automotive’s board declared a quarterly cash dividend of $1.46 per share, up $0.02, or 1.4%, from the previous payout.
The dividend represents an annualized rate of $5.84 per share and is payable on Dec. 1 to shareholders of record on Nov. 13, 2026.
How Retail Views PAG
On Stocktwits, retail sentiment around PAG stock turned ‘bullish’ at the time of writing with ‘high’ message volumes.
PAG shares have gained over 17% year-to-date.
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