Hargreaves Lansdown PLC Accepts £5.44 Billion Acquisition Offer

August 09, 2024 03:27 AM PDT | By Team Kalkine Media

Google News:

Hargreaves Lansdown PLC Accepts £5.44 Billion Acquisition Offer — Image source: © Poringdown | Megapixl.com

Recent News

Novo Nordisk Stock Gains Amid Healthcare Advancements and Market Moves...

Yum Brands (NYSE:YUM) CEO Transition Reflects Digital Growth Focus Rus...

nVent Electric (NYSE:NVT) stock growth driven by financial metrics NYS...

Jabil (NYSE:JBL) Shows Promising ROCE Growth and Capital Efficiency S&...

Hargreaves Lansdown PLC (LSE:HL) has agreed to a £5.44 billion takeover offer from a consortium led by CVC Private Equity Funds. The consortium also includes Nordic Capital XI Delta and Platinum Ivy B 2018 RSC Ltd, a subsidiary of the Abu Dhabi Investment Authority. The offer values each Hargreaves Lansdown share at 1,140 pence in cash, which includes a dividend of 30p per share for the financial year ending June 30.

Takeover Proposal Background

The acquisition proposal was initially received by Hargreaves Lansdown in June. On Monday, the company indicated talks with the consortium were ongoing as it worked to finalize the deal's terms.

Market Response and Shareholder Backing

Following the announcement, Hargreaves Lansdown's shares increased by 2.0% to 1,099.00p, bringing the company's market capitalization to £5.21 billion. The consortium has secured support from shareholders holding just over 25% of Hargreaves Lansdown's shares, including the backing of founders Peter Hargreaves and Stephen Lansdown. Hargreaves intends to retain 50% of his approximately 20% stake, while Lansdown plans to sell his entire 5.7% share.

Statement from Hargreaves Lansdown Chair

Hargreaves Lansdown Chair Alison Platt stated that the independent board views the cash offer as a favorable opportunity for shareholders to obtain immediate and certain cash value for their investments. Platt noted that this level of value might not be achievable through the company’s long-term strategy.

Financial Performance Overview

For the financial year ending June 30, Hargreaves Lansdown reported a slight decrease in pretax profit, falling by 1.6% to £396.3 million, compared to £402.7 million the previous year. Revenue increased by 4.1% to £764.9 million from £735.1 million. Net new business decreased to £4.2 billion from £4.8 billion a year earlier. However, total assets under administration rose by 16% to £155.3 billion, up from £134.0 billion. The total dividend was raised by 4.1% to 43.2p per share, up from 41.5p.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.