The US private equity group has lifted its offer to 250 pence per share, including a special dividend, a 40% premium to where the stock sat before the deal was announced, but the market is now pricing a hair above that figure
International Personal Finance (LSE:IPF) shares rose 7% in early trading on Wednesday, pushing fractionally above the 250p total offer price after US private equity group BasePoint Capital raised its recommended bid and the company simultaneously reported a stronger-than-expected full-year result.
The revised offer from BasePoint’s acquisition vehicle IPF Parent Holdings comprises 235 pence in cash plus a 15 pence special dividend, bringing the total consideration to 250p per share.
That the stock is trading at 250.5p, half a penny above the offer, suggests some investors are either holding out for a further sweetener or positioning on the small but non-zero possibility that a competing bid emerges before the scheme completes.
The deal requires court sanction and approval from IPF shareholders at meetings scheduled for 11 March. Completion is anticipated by the end of the second quarter of 2026.
Two institutional shareholders have already lined up behind the scheme: Janus Henderson has provided an irrevocable undertaking covering approximately 4.08% of shares, and JO Hambro Capital Management has issued a letter of intent for a further 3.04%. The IPF board continues to recommend the offer unanimously.
Results that give the board something to stand on
The full-year numbers released alongside the deal announcement give the directors credible grounds for backing an exit at this price. Pre-exceptional profit before tax rose to £88.6 million from £85.2 million, driven by customer growth of 4.7% to 1.7 million and closing net receivables up 13.9%, with all three divisions contributing.
The impairment rate improved to 9.0% from 9.6%, a meaningful move for a consumer lending business operating across nine markets, including Poland, Mexico and Romania.
The final dividend proposed is 9p per share, bringing the full-year total to 12.8p against 11.4p in 2024, though that payment will effectively be subsumed into the acquisition consideration if the deal closes as planned.