Hargreaves Lansdown 'willing to recommend' £5.4bn takeover from consortium
Financial services firm Hargreaves Lansdown is in takeover talks with a consortium led by CVC Capital
Hargreaves Lansdown has revealed it is in discussions with a consortium led by private equity firm CVC Capital and Abu Dhabi's wealth fund regarding a potential takeover approach worth £5.4billion.
The bosses at the financial services company have informed investors that they would "be willing to recommend" such a deal if the suitors present a solid offer. The company disclosed that this follows three previous approaches from the consortium in recent months, including a £4.7billion approach which was turned down in May.
On Tuesday, Hargreaves Lansdown confirmed receipt of the latest non-binding proposal from the consortium, which includes Luxembourg-based private equity firm CVC, Nordic Capital and Platinum Ivy a subsidiary of the Abu Dhabi Investment Authority.
The proposal values the FTSE 100 company at 1,140p per share, inclusive of a 30p annual dividend for investors. "The revised proposal is subject to a number of pre-conditions, including completion of satisfactory due diligence and agreement of definitive transaction documentation," stated Hargreaves Lansdown.
"The board has confirmed to the consortium that the revised possible cash offer is at a value that the board would be willing to recommend unanimously to Hargreaves Lansdown shareholders, should a firm intention to make an offer ... be announced."
Regulators have now extended the deadline for the consortium to confirm if it will make a firm offer until July 19. Hargreaves Lansdown has issued a statement saying: "There can be no certainty that any firm offer will be made for Hargreaves Lansdown, nor as to the terms on which any firm offer might be made."
Following this announcement, shares in the company surged by 5.2% on Tuesday afternoon.