Shares in British internet brokerage Hargreaves Lansdown plc (LON:HL) traded up more than 14% on Thursday after a takeover bid for Hargreaves was unveiled by private equity suitors CVC Capital, Nordic Capital and the Abu Dhabi Investment Authority ( ADIA). ) via the Platinum Ivy module.
Although the takeover bid was summarily rejected by Hargreaves’ board, it appears that traders and shareholders are expecting some kind of takeover battle for Hargreaves above the initial offer price.
According to publications made by both the CVC-Nordic-ADIA group and Hargreaves himself, the offer made for the company was 985 pence per share, or a total of about £4.7 billion (US$6.0 billion ). After Thursday’s wild session Shares in Hargreaves closed at 1,120p, up 14.4% on the day and 13.7% above the offer price of 985p.
While the price of 1,120p marks a 52-week closing high for Hargreaves, the company’s shares are very well in line with the all-time high of over 2,400p reached in mid-2019. As early as 2022, LON:HL was trading above 1,300p.
Hargreaves’ largest shareholder, the company’s 77-year-old founder Peter Hargreaves, who owns just under 20% of the company, is said to be open to taking the company private at the right price, according to a Reuters report. Mr Hargreaves is said to have held talks with investors recently about a transaction.
We will continue to follow this story as it develops.