Shares of UK online brokerage firm Hargreaves Lansdown plc (LON:HL) traded up by more than 14% on Thursday, after a takeover attempt for Hargreaves was unveiled by private equity suitors CVC Capital, Nordic Capital, and the Abu Dhabi Investment Authority (ADIA) via its Platinum Ivy unit.
Although the takeover offer was summarily rejected by Hargreaves’ board, it appears as though traders and shareholders are expecting some sort of takeover battle to ensue for Hargreaves, at above the initial offer price.
According to releases made by both the CVC-Nordic-ADIA group and by Hargreaves itself, the offer made for the company was at 985 pence per share, or a total of about £4.7 billion (USD $6.0 billion). After Thursday’s wild session Hargreaves shares closed at 1,120 pence, up 14.4% on the day and 13.7% above the 985p offer price.
While the 1,120p price marks a 52-week closing high for Hargreaves, the company’s shares are well off their all-time high above 2,400p, set in mid 2019. As recently as early 2022 LON:HL was trading at above 1,300p.
Hargreaves’ largest shareholder, 77 year old company founder Peter Hargreaves who holds just under 20% of the company, is reported to be open to taking the company private at the right price, according to a Reuters report. Mr. Hargreaves has reportedly held talks with investors recently about a transaction.
We will continue to follow this story as it develops.
