Hargreaves Lansdown has recommended to its shareholders a second bid by a private equity consortium led by CVC Capital Partners to acquire the UK platform for around £5.4bn.
In a statement on 18 June, Hargreaves Lansdown said the revised proposal follows three previous approaches from the consortium in recent months.
The consortium comprises of CVC Advisers, Nordic Capital XI Delta, SCSP (also known as Nordic Capital) and Platinum Ivy B 2018 RSC, a wholly-owned subsidiary of Abu Dhabi Investment Authority managed by its private equity investment department.
“The Board remains confident in management’s ability to execute Hargreaves Lansdown’s strategic priorities and in Hargreaves Lansdown’s fundamental longer term prospects. 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.
“The Board has confirmed to the Consortium that the Revised Possible Cash Offer is at a value that the Board would be willing to recommend unanimously to Hargreaves Lansdown shareholders, should a firm intention to make an offer pursuant to Rule 2.7 of the Code be announced on such financial terms and subject to agreement on other key terms of the Consortium’s proposal and definitive transaction documentation.”
HL shareholders will also be given the option to choose a “rollover equity alternative” in respect of some or all of their shares, the platform explained.
This would provide shareholders the opportunity to re-invest their holdings and co-invest in the consortium’s unlisted acquisition vehicle for up to 35% of its equity.
The deadline for the consortium is 5pm on 19 July.
