Hargreaves Lansdown considering £5.4bn offer for firm

Bristol stockbroker Hargreaves Lansdown is considering accepting an offer of £5.4bn for the business.

The firm, which is one of the largest employers in the South West, had already rejected an £4.5bn offer from a group of Middle East investors which was made last month.

But the consortium has come in with an increased offer and talks look set to place with the coming weeks.

The  consortium led by CVC Advisers and the Abu Dhabi Investment Authority.

Hargreaves Lansdown has endured a difficult couple of years but recently returned to the FTSE 100.

Hargreaves Lansdown last month said it had rejected a £4.5bn  or 985 pence a share, takeover proposal from the CVC-led consortium as the potential offer “substantially” undervalued its prospects.

The consortium has come back with a renewed bid which values the shares at 1,140 pence.

According to some reports Peter Hargreaves, the biggest shareholder in Hargreaves Lansdown, is open to taking the company private at a higher price.

The firm released a statement on the Stock Market following the latest development.

It said: “The revised proposal is subject to a number of pre-conditions, including completion of satisfactory due diligence and agreement of definitive transaction documentation.

“This revised proposal follows three previous approaches from the Consortium in recent months.

“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.

“This announcement has been made without the prior consent of the Consortium.

“As a result, there can be no certainty that any firm offer will be made for Hargreaves Lansdown, nor as to the terms on which any firm offer might be made.

“A further announcement will be made as and when appropriate.”