CVC Advisers Limited announced today that it has received significant approval for its proposed acquisition of Hargreaves Lansdown (HL). On 8 October 2024, the Swiss Competition Commission granted unconditional approval for the acquisition in writing, marking a pivotal step forward in the process.
The agreement for the acquisition was initially reached on 9 August 2024, when the HL Independent Directors and the board of directors of Harp Bidco Limited (Bidco) disclosed that they had come to terms on a recommended final cash acquisition of HL’s entire issued and to be issued ordinary share capital. Harp Bidco Limited is a new entity indirectly by CVC Private Equity Funds, Nordic Capital XI Delta, SCSp, and Platinum Ivy B 2018 RSC Limited.
CVC Advisers Acquisition of Hargreaves Lansdown Approval
While the recent approval from the Swiss Competition Commission is a positive development, the completion of the acquisition remains contingent upon satisfying a series of outstanding conditions outlined in the Scheme Document. These conditions include obtaining or waiving Turkish Antitrust Clearance, securing approval from the Financial Conduct Authority (FCA) regarding changes in control of certain regulated entities within the HL Group, and receiving court sanctions for the Scheme during the upcoming Sanction Hearing.
Under the terms of the acquisition, HL shareholders will receive a total of 1,140 pence in cash for each HL share, consisting of a cash consideration of 1,110 pence per share and a dividend of 30 pence per share for the Financial Year ending 30 June 2024.
The proposed acquisition not only offers substantial cash returns to HL shareholders but also reflects CVC’s confidence in the future growth potential of Hargreaves Lansdown. Stakeholders will be closely monitoring the developments as the company navigates the regulatory landscape to secure final approval and successfully complete this transformative transaction.
CVC Advisers Limited remains optimistic about progressing through the remaining regulatory approvals and conditions necessary to finalize this strategic acquisition.
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