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Hargreaves Lansdown has agreed to a £5.4bn takeover by a consortium of private equity firms that will take the UK’s largest DIY investment site off the London stock market.
The consortium, which is made up of CVC Capital Partners, Nordic Capital and Platinum Ivy, a wholly owned subsidiary of the Abu Dhabi Investment Authority, have agreed to pay £11.40 a share in cash for each Hargreaves Lansdown share.
The price includes a final dividend of 30p for the last financial year. The deal includes an “alternative” option for shareholders who want to stay invested in Hargreaves Lansdown, by allowing them to roll over their stake into the unlisted company.
The FTSE 100 company was founded in 1981 by Peter Hargreaves and Stephen Lansdown, and sells products such as individual pensions directly to customers.
Peter Hargreaves, who owns almost 20 per cent of the company, supports the deal and will sell 50 per cent of his stake while also keeping a stake in the business under its new owners. Lansdown has opted to sell his entire near-6 per cent holding.
Hargreaves Lansdown is the latest company to delist from the London market, adding to a stream of businesses picked off by private equity firms and other acquirers that view UK companies as relatively cheap.
The board “believes that the cash offer represents an attractive opportunity for HL Shareholders . . . which may not be achievable until the execution of the strategy is delivered over the medium to longer term”, said Alison Platt, chair of Hargreaves Lansdown.
Shares in the company have fallen back from a peak of £24 in 2019 following criticism over the cost of its technology overhaul under previous management.