Approach to IFG may lead to offer

DUBLIN-BASED financial services group IFG confirmed yesterday that it had received an approach which may lead to an offer to buy the company.

In a brief statement the group said the approach was preliminary in nature and subject to a number of conditions. “No assurances can be given that a formal offer will be forthcoming or that any transaction will occur,” the firm said.

An IFG spokeswoman said the company could not comment on the identity of the interested party.

Earlier this year IFG said it was eager to buy more UK pension providers following the purchase of James Hay in 2010. At the end of March it announced 2010 revenues which were 29 per cent higher at €120.6 million.

Net income rose to €5.41 million from €5.38 million in 2009 after the company booked a restructuring charge for the acquisition.

Shares in IFG, whose main businesses are pensions administration and corporate and trustee services, climbed 25 cent yesterday to close at €1.75, valuing the company at more than €219 million.

“While the approach is preliminary in nature and no assurances can be given that a formal offer will be forthcoming, the market is likely to presume a deal is on the way,” Goodbody analyst Eamonn Hughes wrote in a research note.

“We would presume the stock moves higher after . . . [this] announcement and any synergy overlap with the potential bidder could drive further gains.”