Hargreaves Lansdown ‘willing to recommend’ £5.4bn takeover proposal

Hargreaves Lansdown has said it is in talks with a consortium led by private equity firm CVC Capital and Abu Dhabi’s wealth fund over a £5.4 billion takeover approach.

Bosses at the financial services firm have told investors they would “be willing to recommend” such a deal if the suitors lay down a firm offer.

The company said it follows three previous approaches from the consortium in recent months, including a £4.7 billion approach which was rebuffed in May.

On Tuesday, Hargreaves Lansdown confirmed it has received 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, which includes 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,” Hargreaves Lansdown said.

“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 said: “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.”

Shares in the company were 5.2% higher on Tuesday afternoon.