The logo of Hargreaves Lansdown Plc’s headquarters in Bristol, UK, on Thursday, August 8, 2024.
Bloomberg | Bloomberg | Getty Images
London – UK Investment Platform Hargreaves Lansdowne It said on Friday it had agreed a 5.4 billion pound ($6.9 billion) takeover bid from a group of investors including CVC Group.
Abu Dhabi’s National Asset Fund and private equity investor Nordic Capital are also part of the consortium, which said the proposal was final.
Shareholders at Hargreaves Lansdowne, Britain’s largest stock exchange, will receive a dividend of 1,110 pence per share and a 30 pence payment under the deal, the company said.
Shares rose about 2% in early trading.
The news comes after the company rejected a consortium’s offer of £4.7 billion, or 985 pence per share, in May, which Hargreaves Lansdown said at the time was a “significantly” undervaluation of the company and its prospects.
The cash offer on Friday represents a 54% premium to the share price of 740 pence on April 11, the day before the group made its initial bid for the company.
HL
The company’s stock has soared since the May takeover bid, after years of challenges including regulatory changes, new entrants to the market and expectations of falling interest rates.
In September 2023, the investment platform, which includes competitors such as Interactive Investor and AJ Bell, outlined a new strategy that included a new customer-centric approach, accelerating innovation, and implementing cost-cutting measures.
Hargreaves Lansdown reported its annual results for the year to the end of June on Friday, with underlying pre-tax profit up 4% to £456 million and revenue up 4% to £764.9 million. But net new business inflows fell 13% to £4.2 billion.
Hargreaves Landsdown chairman Alison Platt said in a statement on Friday that the proposed acquisition “represents an attractive opportunity for HL shareholders”.
Meanwhile, representatives from CVC Private Equity Group, Nordic Capital Advisors and the Abu Dhabi Investment Authority said Hargreaves Landsdown “requires significant investment in a broad-based, technology-led transformation to enhance HL’s proposition and resilience and to drive the next phase of HL’s growth and development”.
“We look forward to working with HL’s management team to accelerate its transformation plans, including investments in technology infrastructure, digital channels and service improvements – all of which are centered around customer value, service, speed of innovation and HL’s clear purpose,” they added.
