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Hargreaves Lansdown considering £5.4bn private equity takeover
CEO Dan Olley – © Hargreaves Lansdown Plc
UK investment platform Hargreaves Lansdown has confirmed it is prepared to recommend a £5.4 billion takeover bid from a private equity consortium led by CVC Capital Partners.
The deal, which values the company at £11.40 per share, comes after several rejected approaches and a turbulent period for the company, with shares falling significantly since their 2019 peak. The consortium, which includes Nordic Capital and Platinum Ivy, you have until July 18th to formalize the offer.
The offer allows shareholders to reinvest in the private equity group’s unlisted vehicle, potentially allowing the company’s founders to remain involved. However, the deal is likely to see Hargreaves Lansdown delisted from the London Stock Exchange, following a trend of private equity buyouts and US listings among UK companies.
Co-founder Peter Hargreaves, Hargreaves Lansdown’s largest shareholder with a 20% stake, told Financial Times: “It is a shame that it has come to this point. It was ranked as one of the best managed companies in the UK 10 years ago.”
Fellow co-founder Stephen Lansdown, who owns 6% of the company, added: “It’s good we have an offer to consider. Now we have to do our homework to see if it works for customers, shareholders and employees. There is a long way to go before this becomes a reality.”