Hargreaves Lansdown to seek bid extension amid CVC-led talks
The FTSE 100 investment platform, which has nearly two million customers, is in talks with a bid consortium about an offer that would incorporate its final dividend, Sky News learns.
Tuesday 18 June 2024 15:08, UK
Hargreaves Lansdown, the FTSE 100 personal investment platform, is expected to extend talks with a consortium of private investors who have proposed buying the company in a deal worth about £5bn.
Sky News has learnt that the London-listed company is in detailed talks with the consortium, led by CVC Capital Partners, about a revised offer that would incorporate a final dividend potentially worth more than 40p-a-share.
An announcement that the two sides are working towards a recommended bid is expected ahead of a Takeover Panel deadline on Wednesday.
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An extension is expected to give the consortium, which also includes an Abu Dhabi state fund, a week or two longer to finalise a formal offer, according to insiders.
People close to the talks cautioned that the situation remained fluid ahead of a Hargreaves Lansdown board meeting which is expected to take place later on Tuesday.
The precise price of a revised offer was unclear on Tuesday, although market sources suggested that including the final dividend, it could be worth in the region of 1050p-a-share or more.
Hargreaves Lansdown said last month that it had rejected a 985p-a-share offer on the grounds that it "substantially undervalued" the company.
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The investment platform has roughly £150bn in customer funds under its supervision, and boasts nearly two million customers.
Key to the outcome will be the views of Peter Hargreaves and Stephen Lansdown, the company's co-founders who between them own roughly a quarter of the stock.
Hargreaves Lansdown and CVC both declined to comment.