Hargreaves Lansdown (HL), a leading investment firm listed on the FTSE 100, has announced its agreement to a takeover offer worth £5.44bn. The offer, valued at 1,140p per share, will see investors receive 1,110p in cash and a dividend of 30p per share.
The consortium of bidders is comprised of CVC, Nordic Capital, and Platinum Ivy, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA). Each firm holds an equal stake in the consortium. This deal follows extensive negotiations, which had to be extended after an initial offer of 985p per share was rejected by Hargreaves directors earlier this summer, as reported by Sky News.
The takeover is subject to approval by shareholders and is expected to be completed in the first quarter of 2025, according to a stock market update released by the consortium. Hargreaves Lansdown’s chairwoman, Alison Platt, described the offer as an “attractive opportunity for HL shareholders to realise an immediate and certain cash value for their investment.”
Founded in 1981, Hargreaves Lansdown is the UK’s largest DIY investment platform, serving approximately 1.9 million customers. If the deal goes through, it will be the latest in a series of big players leaving the London Stock Exchange.
Following the announcement, HL’s shares saw an increase of more than 2% during trading on Friday. The bidding team praised the firm as a “strong, trusted brand” in a joint statement, and expressed their alignment with management in recognizing the need for substantial investment in technology-led transformation to improve HL’s proposition and resilience.
They added, “The consortium brings extensive experience in supporting businesses undergoing transformation, and its members have long records of investing in regulated financial services companies to build better businesses and create better customer experiences.”
The announcement coincided with the release of HL’s annual results for the year ended 30 June, which included an underlying pre-tax profit of £456m, a 4% increase from the previous period. Vivek Raja, an analyst at Shore Capital Markets, stated that the offer is expected to be well-received by shareholders, as it is a “great price for the buyer.”
In other news, Disney has announced plans to invest $5bn in the UK and Europe, while the children of Post Office victims recently met with the boss of Fujitsu as part of an ongoing probe into the company’s role in the scandal. Additionally, an investigation has been launched into Amazon’s AI investment.
