News / Finance
Multi-billion pound takeover offer for Hargreaves Lansdown
Peter Hargreaves and Stephen Lansdown, co-founders of Hargreaves Lansdown, are contemplating supporting a substantial offer from a consortium of private equity firms to buy the renowned investment platform and one of Bristol’s most successful businesses of recent years.
The duo, who collectively hold approximately 25 per cent of the company’s shares, have given the initial nod on the renewed offer.
Hargreaves expressed openness to the idea: “If there’s a consensus for this to happen, I will certainly consider backing it,” he said in a recent interview.
Hargreaves suggested that the complexities of the business he helped found from a bedroom in 1981 might be more effectively managed by private entities.
He told the Today programme: “A turnaround of the investment platform is probably better done in private hands.”
Peter Hargreaves (left) and Stephen Lansdown (right) are no longer on the board of Hargreaves Lansdown but remain major shareholders – photo: Hargreaves Lansdown
A consortium – comprising CVC Capital Partners, Nordic Capital, and Platinum Ivy, a subsidiary of the Abu Dhabi Investment Authority – made an updated bid on June 18.
The offer values Hargreaves Lansdown at £5.4bn. This bid equates to 1,140 pence per share, which includes a 30 pence component for the firm’s 2024 final dividend.
The consortium has shown a keen interest in a takeover bid for several months. Despite the refusal of three previous offers, the group has come back with the current offer which is likely to be accepted.
Hargreaves Lansdown, whose headquarters are on Anchor Road, has been a stalwart in the financial services industry since its inception.
The business has grown to become one of the UK’s leading investment firms, providing a wide range of services to individual investors.
The potential buyout comes amid a broader trend of private equity interest in public companies, driven by the belief that these entities can be more agile and focused away from the pressures of public markets.
While Hargreaves’ and Lansdown’s support would significantly influence shareholder sentiment, the final decision will depend on the collective stance of all shareholders. The offer marks a critical juncture for Hargreaves Lansdown, with implications that could reshape the firm’s future trajectory.
If the deal is to be sealed, it will see one of UK’s largest companies leaving the FTSE 100 index.
Peter Hargreaves, co-founder of Hargreaves Lansdown and its biggest shareholder, says he will consider backing the offer to buy the investment platform by a group of private equity buyers https://t.co/dKGu3E8o3f
— Bloomberg UK (@BloombergUK) June 18, 2024
In an interview with Bloomberg, Hargreaves said: “It’s something to consider now and the board is going to support it so we’re going through the process.
“I’m pleased we have got some finality and we’ll do our homework now.”
For now, the investment community awaits further announcements from Hargreaves Lansdown’s board and its co-founders.
It currently sits as the UK’s largest platform for retail investors, with more than 1.8m customers and £150bn in assets.
Hargreaves Lansdown declined to comment.
Main photo: Martin Booth
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