Hargreaves Lansdown has revealed that it is in discussions with a group led by private equity firm CVC Capital and Abu Dhabi's wealth fund regarding a potential takeover approach worth £5.4bn (€6.39bn)
The board of the financial services company has told investors that it would be willing to recommend such a deal if the consortium presents a solid offer. The company disclosed that this follows three previous approaches from the consortium in recent months.
On Tuesday, Hargreaves Lansdown confirmed receipt of the latest non-binding proposal from the consortium, which includes Luxembourg-based private equity firm CVC, Nordic Capital and Platinum Ivy a subsidiary of the Abu Dhabi Investment Authority.
The proposal values the company at 1,140p per share, inclusive of a 30p annual dividend for investors.
In a statement, the company struck a cautionary note: "There can be no certainty that any firm offer will be made for Hargreaves Lansdown, nor as to the terms on which any firm offer might be made".
Analysts said the announcement could yet produce a higher offer or that an alternative bidder could emerge. Rahim Karim from Investec told the Times: "We understand the board's desire to engage with the consortium, but equally do not see this offer as knock-out in nature."
The deadline for the consortium to confirm if it will make a firm offer has now been extended until 19 July.
Hargreaves Lansdown, based in Bristol, is the UK's most widely used retail investment platform, with about 1.86 million clients holding £149.7 billion in shares, funds and other assets on it.
It was co-founded in 1981 by Peter Hargreaves and Stephen Lansdown. Both have sold stakes in recent years but together still own about a quarter of the company.
Following this announcement, shares in the stockbroker jumped by 5.2% on Tuesday afternoon.
