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Hargreaves Lansdown shares rise as investment platform rejects takeover bid

Published 05/23/2024, 07:05 AM

Investing.com -- Shares in Hargreaves Lansdown (LON:HRGV) rose on Thursday after the U.K. investment platform said it had rebuffed a takeover bid from a consortium of investors comprising CVC Advisers and a subsidiary of the Abu Dhabi Investment Authority that valued it at 4.67 billion pounds.

In a statement on Wednesday, Hargreaves Lansdown said its board had "unanimously rejected" the offer, which was put forward in April and priced at 985 pence per ordinary share in the company.

"[I]t substantially undervalues Hargreaves Lansdown and its future prospects," the group said.

Media reports said that the consortium, which also includes private equity group Nordic Capital, was eyeing a potential revised approach for the London-listed group. The investors have until June 19 to deliver a firm offer, Hargreaves Lansdown said.

The company flagged that there is "no certainty" that a bid will be made, adding that "a further announcement will be made as and when appropriate."

Speculation around a possible deal fueled gains in shares in Hargreaves Lansdown on Wednesday as well.

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