Hargreaves Lansdown and AJ Bell stocks surged after rejecting takeover bid; positive.

From Morningstar: 2024-05-23 07:14:00

Shares in Hargreaves Lansdown (HL) and AJ Bell (AJB) surged after HL rejected a takeover bid from private equity firms, including CVC Capital Partners. HL’s share price increased by 16.5% in five days and now sits at 1,059.84p. AJ Bell also saw an 11.03% share price leap to 403.50p.

HL rejected a bid of 985p per share from the private equity group, citing undervaluation. Private equity interest in UK wealth management continues, with companies trading at discounts to global peers. HL has faced challenges, including being removed from the FTSE 100 last year.

AJ Bell reported a revenue increase of 27% year-on-year, reaching £131.3 million in the first half of the financial year. Profits before tax rose 47% to £61.4 million. Assets under administration grew 13%, surpassing £86 billion. The platform also announced an interim dividend increase to 4.25p per share.



Read more at Morningstar: Shares in Hargreaves Lansdown and AJ Bell Surge