Hargreaves Lansdown shareholders have overwhelmingly approved the £5.4 billion takeover of the investment firm by a private equity-led consortium.
At Monday's general meeting, about 87 percent of the group's investors voted in favor of the transaction, while 13.4 percent voted against it.
Once the sale is completed, investors will receive £11.40 in cash for each share they hold, as well as a dividend of 30p per share.
Deal on: Hargreaves Lansdown shareholders have overwhelmingly approved the £5.4 billion takeover of the investment firm by a consortium including CVC Capital Partners
Hargreaves co-founders Peter Hargreaves and Stephen Lansdown, who own about a quarter of the company's shares, will receive £535 million and £309 million respectively.
In August, the company agreed to be purchased by a consortium of CVC Capital Partners, Nordic Capital and Platinum Ivy, a subsidiary of sovereign wealth fund Abu Dhabi Investment Authority.
The trio initially put forward a £4.7 billion offer in May, but Hargreaves' board flatly rejected the offer, saying it undervalued the group.
After the new proposal was made, 72-year-old Stephen Lansdown questioned its price, saying it was “not the best deal in the world,” although he agreed it would take the company “into a different era where it can grow and evolve.” .
Bristol-based Hargreaves is the UK's largest retail investment platform, with £155.3 billion of assets under management and almost 1.9 million clients as of June.
The company saw significant growth during the lockdown period, when many young Brits with spare cash tried their hand at retail investing for the first time.
However, growth began to slow after Covid restrictions were eased and the Bank of England raised interest rates amid rising inflation.
Despite rising profits, Hargreaves fell to the FTSE 250 index last December after its share price fell by more than two-thirds from its pre-pandemic peak. It returned to the FTSE 100 index in May.
Hargreaves' planned sale comes amid a flurry of takeovers of London-listed companies that are often seen as undervalued.
In recent months, cybersecurity giant Darktrace, Robinsons Squash maker Britvic, video games company Keywords Studios and packaging supplier DS Smith are just some of those who have agreed billion-pound takeover deals.
Not all takeover deals have been successful, however – property website Rightmove rejected a £6.2 billion offer from REA Group, whose majority shareholder is Rupert Murdoch's News Corporation.
Hargreaves Lansdown shares were virtually unchanged on mid-Tuesday afternoon, up 0.1 per cent, or 1p, to £10.87, well below their high of £24.19 in May 2019.
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