IFG Group has signed an agreement for the sale of its entire International Division (Segment) to AnaCap Financial Partners II LP.
The purchase price is GBP70 million (EUR84 million) which will be paid in full on the completion of the sale. The purchase price shall be subject to an adjustment upon finalisation of the completion accounts. The sale is subject to certain conditions including shareholder and regulatory consent. The EGM, at which an ordinary resolution approving the sale shall be voted upon by the shareholders, shall be held in advance of the AGM on 27th June 2012. A circular incorporating a notice of the EGM with full details of the proposed sale shall be sent out to shareholders.
Profit for the International Division for 2011 was GBP8.02 million (Group GBP22.6). Gross assets as of 31 December 2011 were GBP64 million (Group GBP184 million). Declan Kenny, CEO of the International Division will remain with the International Division following the sale and he will resign from the Board of IFG.
CEO, Mark Bourke says: "IFG is delighted to conclude the agreement for sale with AnaCap. Strategic review had concluded that further investment to fund expansion or outright sale of the division were the optimal choices for the Group. After an initial approach an offer of GBP70 million was negotiated. This sale represents an excellent price for this valuable business. The proceeds will provide options for the Group including debt repayment, shareholder return and strategic investment in the SIPP and advisory businesses".
Declan Kenny CEO of the International Division, says: “The management of the International Division are delighted to partner with AnaCap in light of AnaCap’s significant experience within the European financial services sector, as well as its commitment to the future growth of the business and maintaining the key principles of quality client service and independence".
The International Division consists of Trustee and Corporate Services in multiple jurisdictions including Jersey, Cyprus, Switzerland and the Isle of Man.