Hargreaves Lansdown rejects takeover bid, deeming offer undervalued. So, today, Hargreaves Lansdown plc has officially addressed a proposed takeover bid from a consortium comprising CVC Advisers Limited, Nordic Capital XI Delta, SCSP, and Platinum Ivy B 2018 RSC Limited. The firm disclosed that it had been approached twice by the consortium regarding a potential acquisition, with the most recent offer valuing Hargreaves Lansdown at 985 pence per ordinary share, totaling approximately £4.7 billion (USD $6.0 billion). This proposition sparked a surge in Hargreaves Lansdown’s stock price, which closed at 979 pence on Wednesday after trading within a relatively narrow range of 700-750 pence from February to April.

Hargreaves Lansdown Rejects Takeover Bid, Citing Undervaluation

However, Hargreaves Lansdown’s Board unanimously rebuffed the offer, citing its belief that the proposal significantly undervalues the company and its future prospects. Emphasizing their commitment to executing their strategic vision, the Board indicated that it will provide further updates during the full year results announcement scheduled for August 9, 2024. Shareholders should refrain from taking any immediate action.

Under Rule 2.6(a) of the Code, the consortium has until June 19, 2024, to either declare firm intent to proceed with an offer for Hargreaves Lansdown or announce its decision not to pursue the acquisition. Any extension of this deadline would require mutual agreement between Hargreaves Lansdown and the Takeover Panel. Despite the ongoing speculation, uncertainty looms over the potential outcome, with no guarantee of a definitive offer materializing. As Hargreaves Lansdown navigates the implications of the proposed takeover bid, the company stands firm in its conviction that its true value extends beyond the offer on the table.

With a focus on delivering value to its shareholders and advancing its strategic objectives, Hargreaves Lansdown remains steadfast in its commitment to charting its own course. As the deadline for the consortium’s decision approaches, the industry awaits the next chapter in this unfolding saga. 

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