The private equity consortium poised to acquire Hargreaves Lansdown has expanded the group financing the £5.4bn takeover deal by adding new lenders.
The additional lenders include institutions from various regions, highlighting the global interest in the acquisition of the UK’s largest retail investment platform.
CVC, Nordic Capital and Platinum Ivy, a subsidiary of the Abu Dhabi Investment Authority, have announced the inclusion of four new lenders. These lenders are Korea Investment, KDB Asia, Sona Asset Management, and the Canadian pension giant, The Public Sector Pension Board. This move is set to solidify the financing structure for the £5.4bn cash offer.
The deal received approval from the Hargreaves Lansdown board on 9 August. The UK’s largest retail investment platform, holding a 40 per cent market share, will transition into private ownership following this approval.
With the board’s approval, the shareholders are expected to vote on the proposal. The approval meeting is scheduled for 14 October, according to a recent announcement to the stock exchange.
A dividend of 30 pence per share is set to be paid out to shareholders on 1 November. This dividend is based on the group’s full-year dividend for the year ending 30 June.
The shift to private ownership could potentially reshape the dynamics of the London Stock Exchange, affecting investor sentiment and future listings.
The inclusion of global lenders underscores the widespread interest and confidence in the stability and growth potential of Hargreaves Lansdown.
This diverse backing is expected to enhance the robustness of the financial support for the takeover, providing a solid foundation for future growth.
Future developments post-takeover will be keenly observed by market analysts and stakeholders alike.
The upcoming vote on 14 October remains critical to the finalisation of the takeover.
With a diverse group of lenders now backing the deal, the private equity consortium is well-positioned to complete the acquisition smoothly.
