CEO Dan Olley – © Hargreaves Lansdown Plc
UK investment platform Hargreaves Lansdown has confirmed it is prepared to recommend a £5.4 billion takeover offer from a private equity consortium led by CVC Capital Partners.
The deal, valuing the company at £11.40 per share, comes after several rejected approaches and a turbulent period for the company, with shares dropping significantly from their 2019 peak. The consortium, which includes Nordic Capital and Platinum Ivy, has until 18 July to formalise the bid.
The offer allows shareholders to reinvest in the private equity group’s unlisted vehicle, potentially enabling the company’s founders to remain involved. However, the deal will likely see Hargreaves Lansdown delist from the London Stock Exchange, following a trend of private equity acquisitions and US listings amongst UK companies.
.png)
Co-founder Peter Hargreaves, Hargreaves Lansdown’s largest shareholder with a 20% stake, told the Financial Times: “It’s a disgrace that it’s come to this. It was classified as one of the best-run companies in the UK 10 years ago.”
Fellow co-founder Stephen Lansdown, who owns 6% of the company, added: “It is good that we have an offer to consider. We now have to do our homework to see whether it works for clients, shareholders and staff. There is a long way to go before it becomes a reality.”