Financial services firm IFG has confirmed it has entered into talks with private equity firm Bregal Capital for a possible takeover that values the firm at more than €231 million.

Under the deal, shareholders could be offered €1.80 per IFG share, a 35 per cent premium over the stock's average closing price on the Irish market over a three month period ending April 20th, the day before the initial proposal was received.

Shareholders will also be offered a non-cash alternative for those who wish to re-invest their offer proceeds.

Chief executive Mark Bourke said IFG had worked on building its business in recent years, into a very resilient, attractive business, with a high visibility income stream and predictable profitability.

IFG will work exclusively with Bregal until October 10th. If a firm offer is made, it is expected any new owners to carry on the company's current strategy of organic and acquisition-led growth.

It's a path that has served IFG well. Announcing its half-year results,  the group said revenue rose to £56.3 million (€63.6 million) from £49.6 million a year earlier, while operating profit increased to £7.9 million from £400,000.

Adjusted earnings were £10 million, from £8.4 million in the first half of 2010. Group net debt fell to £10.3 million, compared with £17.2 million previously.

"Our results show that in each of the three main parts of our business, we're making progress pretty much as we expected and the market expected," Mr Bourke said.

"Ireland had a very good first half, building the pensions and advisory side of the business."