British investment platform Hargreaves Lansdown has confirmed its acceptance of a takeover bid valued at £5.4 billion ($6.9 billion) from a consortium of investors, which includes CVC Group, Abu Dhabi’s sovereign wealth fund, and private equity firm Nordic Capital. This final offer was announced on Friday, marking a significant development for the U.K.’s largest stockbroker.
Under the terms of the agreement, Hargreaves Lansdown shareholders will receive 1,110 British pence per share, in addition to a dividend of 30 pence per share. Following the announcement, the company’s shares experienced a modest rise of approximately 2% in early trading.
This latest bid comes after Hargreaves Lansdown turned down a previous offer from the same consortium in May, which was valued at £4.7 billion, or 985 pence per share. At that time, the company described the initial proposal as significantly undervaluing its worth and growth potential.
The new offer represents a premium of 54% compared to the share price of 740 pence on April 11, just before the consortium’s initial bid was made public. This development is expected to reshape the landscape of the investment platform sector in the U.K. and reflects growing interest from international investors in British financial institutions.
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