Hargreaves Lansdown, a leading personal investment platform listed on the FTSE 100, is expected to continue negotiations with a consortium of private investors for a potential acquisition deal worth approximately £5bn. According to sources, the London-based company is currently in advanced discussions with the consortium, led by CVC Capital Partners, regarding a revised offer that includes a final dividend of more than 40p per share.
An official statement confirming that both parties are working towards a recommended bid is anticipated to be released before the Takeover Panel’s deadline on Wednesday. The extension of talks is expected to provide the consortium, which also includes an Abu Dhabi state fund, with additional time, possibly up to two weeks, to finalize their formal offer.
Insiders close to the negotiations have cautioned that the situation is subject to change, particularly as the Hargreaves Lansdown board is scheduled to meet later today. The exact value of the revised offer remains unclear at this time; however, market sources have estimated that, with the inclusion of the final dividend, it could be worth approximately 1050p per share or more.
Last month, Hargreaves Lansdown announced that it had rejected an offer of 985p per share, deeming it to significantly undervalue the company. With a customer fund portfolio of approximately £150bn and a customer base of nearly two million, the investment platform has established itself as a major player in the market.
The outcome of the negotiations is likely to be influenced by the opinions of Peter Hargreaves and Stephen Lansdown, the co-founders of the company who collectively own approximately 25% of the stock. Both Hargreaves Lansdown and CVC Capital Partners declined to provide any comments on the matter.