I actually think HL and AJB should have considered a merger to beat of the incoming competition from the US. Charges could have been reduced due to savings in back office and IT systems - if the HL board had any ambition they'd have at least looked at this option as a way of staying independent and UK listed. AJB have a similar business model (unlike ii) and are further ahead in the advice side of things than HL. |
I don't think it's been confirmed if the rollover option shares will pay dividends - an important consideration if you're going to hold shares in a private company for a number of years.
I don't think HL have confirmed if they can be held through an HL Fund & Share account.
@Dassera, even if you buy shares now I'm not sure you'd get 100% in the rollover option - would depend on demand and you might get scaled back, but I guess you'd at least get your cash back. |
Thanks Dassera but what does it mean in practice? |
Plenty more here...
hxxps://www.londonstockexchange.com/news-article/market-news/offer-for-hargreaves-lansdown-plc/16610825 |
 As an alternative to the Cash Consideration, eligible HL Shareholders may elect to participate in the Alternative Offer by exchanging some or all of their HL Shares for rollover loan notes issued by Bidco which will, subject to implementation of the Rollover, ultimately be exchanged for rollover ordinary shares in the capital of Topco having the rights of "Rollover Shares" set out in the Topco Articles (as amended from time to time) (the "Rollover Securities"), subject to the terms and conditions of the Alternative Offer (detailed in paragraph 12 below). Eligible HL Shareholders will be able to elect for the Alternative Offer in relation to some or all of their holdings of HL Shares and will receive (subject to implementation of the Rollover):
for each HL Share: 1 Rollover Security
* The financial terms of the Cash Offer and the Alternative Offer are final and will not be increased or improved, except that Bidco reserves the right to increase the amount of the Cash Consideration and improve the financial terms of the Alternative Offer if there is an announcement on or after the date of this announcement of an offer or a possible offer for HL by a third party offeror or potential offeror. Bidco reserves the right to elect to implement the Acquisition by way of an Offer as an alternative to the Scheme (with the consent of the Panel (where necessary) and subject to the terms of the Cooperation Agreement (if applicable)).
If the Scheme becomes Effective, assuming all eligible HL Shareholders validly elect to receive consideration by means of the Alternative Offer in respect of 35 per cent. of their holdings of HL Shares and no such elections are scaled back as a result of the US Holders Cap or the Shareholding Cap, following satisfaction of the Cash Consideration and subject to implementation of the Rollover, HL Shareholders will hold up to 35 per cent. of the economic rights in Topco. Following the implementation of the Rollover, Consortium JVCo will subscribe for Topco A Ordinary Shares (at the same subscription price per share as Consortium JVCo paid in respect of its subscription for Topco A Ordinary Shares to fund the payment of the Cash Consideration to HL Shareholders) for an aggregate subscription amount equal to the total costs and expenses incurred and to be incurred by or on behalf of the Topco Group and the Consortium Members in connection with the Acquisition. This issuance will be implemented on a non-pre-emptive basis in order to enable the relevant members of the Topco Group to settle such costs and expenses, meaning that holders of Rollover Securities will not be entitled to participate and their economic rights in Topco will therefore be diluted by such issuance with effect from the Costs Issuance Date. Such costs and expenses incurred and to be incurred in connection with the Acquisition are currently expected to be approximately £100 million, which would result in a limited dilution of participating HL Shareholders of up to approximately 3 per cent. of the holding of HL Shareholders who elect to receive the Rollover Securities. An updated estimate of such costs and expenses will be included in the Scheme Document.
* The financial terms of the Cash Offer and the Alternative Offer are final and will not be increased or improved, except that Bidco reserves the right to increase the amount of the Cash Consideration and improve the financial terms of the Alternative Offer if there is an announcement on or after the date of this announcement of an offer or a possible offer for HL by a third party offeror or potential offeror. Bidco reserves the right to elect to implement the Acquisition by way of an Offer as an alternative to the Scheme (with the consent of the Panel (where necessary) and subject to the terms of the Cooperation Agreement (if applicable)). |
Has anyone seen an explanation of what shareholders get if they choose the rollover option? |
I am considering buying shares and electing for the rollover equity alternative.
Does anyone know if the delisted equity can be held via an ordinary (not ISA) Hargreaves Lansdown account? |
I know that you clown ...figure of speech for a dithering/indecisive board |
I will be holding the shares and rejecting the take over offer |
To who though? I looked at II but they charge a monthly fee which is both for SIPP amd ISA holdings so seems expensive. Have started to look at AJ Bell who charge 0.45% for holdings. Any advice grateful! Am looking to move my kids Junior ISAs too. |
I think there will be quite a few accounts moving away from this platform with them going private, a lot of people would of been more comfortable having there funds kept within a british ftse 100 company than a private one partly foreign owed, its not the cheapest platform either, time for me to make them long awaited transfers to safe a few pound, no thought for clients here whatsoever. |
Guardian article: "Hargreaves Lansdown is surrendering too cheaply to private equity"
Peel Hunt comment:
"At the offer price, the consideration equates to 16.6 times consensus FY25 [earnings], or 3.5 per cent of [assets under management] – in our view, whilst this is not a huge price, it looks to reflect the investment required. Given the time to reach a recommendation, in our view it seems unlikely that other interest will now emerge". |
Women are just as rubbish as men when it comes to management. Positive discrimination is still discrimination. Wake up and end this wokery nonsense asap. |
And the HL chair is alsion Platt???? is this the same useless maggot that sunk countrywide then got a 600k payoff???? OMG this effing country
what next Paula Vennells for PM |
Shocking really! They have sold up and smacks a little of hypocrisy! |
@saltaire111 Peter H has agreed to take 50% cash and 50% in the buy out vehicle according to the CVC RNS. Steve Lansdown as agreed to take 100% in cash. The only defence I can see for them is that both of them ultimately paid zero for their shares as founders and are hence still making a huge premium.
Not sure what took so much time though? - the deal on the table and options available (ie. 35% continuing equity) are the same as originally suggested 2 months ago! Still no mention of clients holding shares in ISA/SIPP as far as I can see - no thought given to HL client holders and other retail shareholders - shocking from a company and directors who claim to champion retail investors. |
Shocked at the low price here. Surprised the founders have just rolled over. |
Disgraceful. No concrete premium was offered, yet investors drooled for a 20-30p more. How cheap of them!
Especially the business founders... they gave away their baby reaping no benefits from the sale. The share price was bound for a recovery sooner or later. Here we go again, short sighted greed.
The more I look at the LSE the more I realize it is not a place for investors. |
CVC will pump it full of debt and re float in two or three years, same as private equity always do, think AA and Debenhams for where this is going. Most small investors were probably buying this around 16 quid, so have probably lost out, it went as high 23 quid I think, shows what a pos U.K. shares and U.K. investing is, capital destructive rubbish. Having said that in the oncoming sell off and without a bid where would these have been, a fiver? |
Lomax99 - I think they have the board in their pocket. Plus major shareholders will go with the alternative deal and maintain their ownership.
Salty |
Deal done on hl takeover |
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