IFG Group Plc (IFG) rose the most in more in than 10 months after saying it received an unsolicited approach for its International Corporate Trustee Services division.
IFG gained as much as 25 cents to 1.5 euros, the biggest intraday gain for the Dublin-based financial services provider since May 4, and was trading up 10 cents as of 10:00 a.m. The stock rose 5.5 percent yesterday.
“This announcement is made in light of recent share price movements,” IFG said in a statement today, without naming the potential bidder. “It should be carefully noted that the approach is recent, at an initial stage and is subject to significant conditionality and caveats.”
IFG said in September that talks on a takeover bid for the entire company with private equity investors Bregal Capital LLP concluded without a bid after a deal at 1.8 euros a share became difficult. IFG, which provides financial advice and administers personal pensions programs, said in November earnings are “on track” as a whole after a strong performance in the first half.
The International division contributed 35 percent of IFG’s operating profits in the first half, at about 4.2 million pounds ($6.6 million), with revenue of 16.6 million pounds, according to figures from Dublin-based stockbroker Davy.
Davy estimates on a full-year basis that profit at the business will fall to 8.5 million pounds from 9.5 million pounds a year earlier, as activity levels fall, according to a note today.
“Although activity levels in the industry generally have been impacted by a global slowdown, it is an attractive business with a high level of recurring income,” Emer Lang, an analyst with Davy said.
The approach may or may not advance and there is no assurance of a formal offer, IFG said.
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