Hargreaves Lansdown: A New Chapter After Over 40 Years

Peter Hargreaves and Stephen Lansdown, the founders of the UK's largest trading platform Hargreaves Lansdown, are on the verge of a significant financial success. More than four decades after founding the company in a bedroom in Bristol, the two pioneers can expect an impressive profit of £800 million. From the beginning, they expanded their company into one of the preferred trading platforms for British private investors. Now, they have decided to sell Hargreaves Lansdown to European and Middle Eastern investors. A consortium consisting of CVC Capital, Nordic Capital, and the Abu Dhabi sovereign wealth fund will drive the takeover. Peter Hargreaves, aged 77, will sell half of his company shares for £534 million to the consortium and will remain a key player by contributing the rest of his shares to a new ownership structure. Stephen Lansdown, now 71, will dispose of all his shares for around £309 million. This takeover could mark the end of a 17-year stock market presence for the company and represents another blow to the London Stock Exchange. In recent years, numerous significant companies have moved their listings to the U.S. or have gone private. Despite the success and loyal customer base of nearly two million people, the two founders have increasingly withdrawn from daily operations. Hargreaves, however, remained a constant voice, criticizing management over stock losses. Lansdown pursued other interests, particularly in sports, with investments in the Bristol Bears and Bristol City FC. The board of Hargreaves Lansdown, led by Alison Platt, has accepted the takeover offer of 1,110 pence per share, valuing the company at £5.4 billion. Additionally, shareholders are to receive a dividend of 30 pence per share. According to Platt, the offer provides an attractive and secure return for investors. Critics, however, see the structure of the offer as a strategy to secure Hargreaves' support for the deal. Shareholders have the option between a cash settlement or participation in the CVC-backed companies that will continue the business. The board recommends most choose the cash settlement.