NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

Hargreaves Lansdown jumps on new takeover offer, board 'willing to recommend'

Published 18/06/2024, 13:59
Hargreaves Lansdown jumps on new takeover offer, board 'willing to recommend'
UK100
-
HRGV
-

Proactive Investors - Hargreaves Lansdown (LON:HRGV) PLC (LSE:HL.) said it would be willing to accept a new cash offer priced at 1,140p that is had received from a consortium made up of private equity companies CVC and Nordic Capital, and the Abu Dhabi Investment Authority.

This proposed offer follows three previous approaches from the consortium in recent months, the FTSE 100 investment and pensions group said, the last of which at 985p per share was rejected last month.

The HL board said the latest offer "would provide the certainty of value in cash to shareholders" and so it has "decided to engage" with the consortium and provide access for due diligence to be carried out.

Directors said they have indicated to the consortium that the new bid is "at a value that the board would be willing to recommend unanimously" to shareholders, should a firm offer be made.

Part of the offer comprises a 30p final dividend, with an option for shareholders to elect for a "rollover equity alternative" to co-invest in the consortium's unlisted acquisition vehicle.

Less than an hour earlier, a Sky News story had indicated that "detailed talks" with the consortium were expected to produce a new offer price of around 1,050p.

Shares in the FTSE 100-listed company, which were trading flat around 1,071p before the Sky story emerged, spiked to above 1,112p before dropping 2.5% to 1,048p and then spiking again.

The put-up-or-shut-up deadline, which was due at 5pm tomorrow, has been extended to 19 July.

Co-founder and largest shareholder Peter Hargreaves said he was open to backing a take-private deal, but not at the price of the May offer.

Hargreaves, who owns around a 19.8% shareholding, was reported to have been mulling taking the company private himself, with the share price having fallen more than 60% since the end of 2019.

Fellow co-founder Stephen Lansdown, who holds a 5% stake, also questioned if the level of the May offer was sufficient.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.