Wealth-management platform Hargreaves Lansdown PLC (LSE:HL.) has formally agreed to be taken over by a consortium of private equity firms for 1,140p per share.
The offer tabled by CVC, Nordic Capital and Platinum Ivy values Hargreaves at a 54% premium to Hargreaves’ share price on 11 April, when the consortium first approached the investment platform’s board.
It values Hargeaves at £5.4 billion.
Certain shareholders have bristled at what they see as a “two-tiered” offer for unfairly favouring the firm’s co-founders and largest shareholders.
In the formal offer documents, the consortium has also tabled an ‘alternative offer’ intended to give shareholders who prefer an ongoing stake in the business an opportunity to maintain an equity interest, albeit in a private company structure.
This offer is particularly aimed at those who are looking for long-term participation in the company's future, rather than immediate liquidity through the cash offer.
"It has been an eventful first 12 months, not least with the approach from the consortium which has today resulted in a firm and final offer for HL, with the independent board of HL intending to unanimously recommend the cash offer to shareholders,” said Hargreaves’ chief executive Dan Olley.
“As I made clear on joining, we need to help more people across the UK save and invest to secure their financial future, so for us this is more than a mission, it's an obligation.
“I have therefore been reassured during the process that the consortium is aligned with our mission.”
Hargreaves also published its full-year results today, showing total revenues up 4% to £765 million and profit before tax down 2% to £396 million.
A 43.2p dividend was announced.