UK asset manager Hargreaves Lansdown (HL) has rejected a takeover bid from a consortium backed by Abu Dhabi sovereign wealth fund Abu Dhabi Investment Authority (ADIA).
The consortium also includes a number of private equity groups such as Luxembourg-based CVC Partners, Nordic Capital and ADIA subsidiary Platinum Ivy.
The latest bid of £4.76 billion (US$6.05 billion) values HL shares at 985p but was unanimously rejected by the HL board because it “substantially undervalues Hargreaves Lansdown and its future prospects”.
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“The board is focused on executing its strategy and looks forward to updating the market at the full-year results on 9th August 2024. In the meantime, shareholders are advised to take no action,” stated HL.
Despite the rejection, HL shares rose by 16% following the news of the bid, meaning that the firm’s stock price has increased by 60% so far this year.
The consortium has confirmed that its bid was rejected and is considering another offer before a deadline of June 19.