Shareholders in Hargreaves Lansdown will receive a range of documents explaining the offer in detail, which will provide a fuller understanding of the deal.
For now, your shares remain yours to sell into the markets if you so choose. At the time of writing, the share price stands at 1100p, which is less than the 1140p guaranteed by this deal, if it is approved.
While there is no guarantee of the deal being passed, with unanimous recommendation from the board and both co-founders also backing the offer, it is widely expected to be approved.
Shareholders will receive a vote proportional to the amount of shares they own, and can choose to vote in favour, vote against, or abstain from the poll. There is no obligation to vote.
Alongside the cash offer, investors are able to swap their shares for an investment in Topco, which will be the unlisted vehicle that owns Hargreaves Lansdown, if the deal is approved.
Investors are being offered the option to swap one share for one “rollover security”, which would provide a continued stake in the platform.
As yet, details aren’t fully known about this option, with more clarity due in the scheme document.
A total of 35pc of the Topco is eligible for retail investors to purchase, although the shares will have no voting rights.
Investors will also take on £100m of costs to acquire the company and establish the Topco, meaning investors will immediately take a 3pc hit when purchasing these shares.
Shareholders should also note that this investment is extremely unlikely to be Isa eligible, and will likely have to be held in a general investment account (GIA).
The share price has risen 2pc on today’s news, as the markets now know the shares are likely to be guaranteed at a price of 1,140p per share.
Year-to-date, the share price has risen 54pc, with the gains largely attributed to this offer being made public.
The current offer of 1,140p per share is significantly below the peak share price of the firm, which stands at 2,213p per share, achieved in 2019.
