Hargreaves willing to recommend new takeover offer from CVC consortium

18th Jun 2024 13:54

(Sharecast News) - Hargreaves Lansdown said on Tuesday that it would be willing to recommend a firm takeover approach at 1,140p a share from a consortium led by CVC Capital Partners and has therefore requested an extension to the 'put up or shup up' deadline.

Last month, HL said it had rejected a 985p per share takeover offer from the consortium, which comprises Nordic Capital and Platinum Ivy - a wholly-owned subsidiary of Abu Dhabi Investment Authority - as it "substantially" undervalued the group and its future prospects.

The Takeover Panel deadline for the consortium to either make a firm intention to make an offer or walk away was 19 June but this has now been pushed back to 19 July.

HL said 30p of the new 1,140p offer comprises a FY2024 dividend, with an option for the company's shareholders to elect for a rollover equity alternative in respect of some or all of their shares.

"The board remains confident in management's ability to execute Hargreaves Lansdown's strategic priorities and in Hargreaves Lansdown's fundamental longer term prospects," HL said.

"However, having evaluated the revised possible cash offer, which would provide the certainty of value in cash to shareholders, the board has decided to engage with the consortium and provide confirmatory due diligence access."

HL said it has told the consortium the latest proposal is at a value it would be willing to recommend to shareholders should a firm offer be made.

At 1410 BST, the shares were up 4.4% at 1,120.50p.