Hargreaves Lansdown extends £5.4bn takeover deadline

19th Jul 2024 08:25

(Sharecast News) - The deadline for a potential £5.4bn takeover of Hargreaves Lansdown has been pushed back, the fund supermarket confirmed on Friday.

The FTSE 250 firm said last month it was minded to recommend a 1,140p per share offer from a private equity consortium led by CVC Capital Partners, after it rejected an earlier approach.

Under Takeover Panel rules, the consortium was given until 19 July to make a formal offer or walk away, a so-called put up or shut up.

However, on Thursday Hargreaves Lansdown said the deadline had been extended further, to 5 August.

In a brief statement, it said: "Discussions between Hargreaves Lansdown and the consortium, as well as the negotiation of the definitive transaction documentation, remain ongoing.

"There can be no certainty that a firm offer will be made."

Hargreaves Lansdown also provided an update on fourth-quarter trading on Thursday, which showed net new business in the three months to June end dipped to £1.6bn from £1.7bn a year previously.

Net client growth was 24,000, up from 13,000 a year earlier, driven by strong demand for SIPPs ISAs and active savings accounts. Client retention was 91.1%.

Assets under administration, meanwhile, was a record £155.3bn, compared to £134bn in the fourth quarter last year.

Dan Olley, chief executive, said: "While we still have more to do to deliver against our strategic priorities, we are making progress and I'm pleased to see ongoing good momentum this quarter.

"As momentum across the business comes through in our results, we will continue to invest in the value proposition for our clients."

Olley did not comment on the ongoing takeover discussions.

The consortium, which also includes Nordic Capital and Platinum Ivy, part of the Abu Dhabi Investment Authority, first made a surprise 985p per share offer for Hargreaves Lansdown earlier this year.

The board unanimously rejected it for "substantially" undervaluing the business.

As at 0915 BST, shares in Hargreaves Lansdown were largely flat at 1,103p.