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Hargreaves Lansdown, a leading British financial services company, has announced that its independent Board of Directors has unanimously rejected an acquisition proposal from a high-profile consortium. The consortium, which includes CVC Advisers Limited, Nordic Capital XI Delta, and Platinum Ivy B 2018 RSC Limited, a subsidiary of the Abu Dhabi Investment Authority (ADIA), had put forward an offer of 985 pence per share.
The Board of Hargreaves Lansdown confirmed that it had received two approaches from the consortium regarding a potential acquisition, with the most recent offer valuing the company at 985 pence per share. However, after thorough consideration, the Board decided to reject the proposal, citing that it significantly undervalued the company's current standing and future prospects.
In a statement, the Board expressed confidence in Hargreaves Lansdown's strategic direction and growth potential. "The Board believes that the proposal from the consortium substantially undervalues Hargreaves Lansdown and its future prospects," the statement read. "We are committed to executing our strategy and look forward to providing an update on our progress at our full year results announcement on August 9, 2024."
Hargreaves Lansdown has been focusing on strengthening its position as a leading provider of investment services in the UK. The company's strategic initiatives include enhancing its digital platform, expanding its range of investment products, and improving customer experience. The Board believes that these efforts will yield significant value for shareholders in the long term.
In the meantime, the Board has advised shareholders to take no action in response to the consortium's proposal. "We appreciate the continued support of our shareholders as we work towards delivering long-term value," the Board added.
The rejection of the consortium's offer underscores the Board's confidence in Hargreaves Lansdown's ability to achieve its strategic objectives independently. The company remains focused on executing its plans and delivering strong financial performance in the years to come.
The proposal from the consortium, which included prominent investment firms CVC Advisers Limited, Nordic Capital XI Delta, and the Abu Dhabi Investment Authority, highlights the significant interest in Hargreaves Lansdown from major investors. However, the Board's decision to reject the offer reaffirms its belief in the company's intrinsic value and growth potential.
As Hargreaves Lansdown continues to pursue its strategic initiatives, the financial community will be closely watching the company's performance and future developments. The upcoming full year results announcement on August 9, 2024, is expected to provide further insights into the company's progress and future outlook
