Ifg Regulatory News (IFP)

AGM Statement

Update on possible offers

Ladies and Gentlemen I wish to avail of this opportunity to update you on discussions that have taken place in relation to possible offers for IFG Group .

On April 21st a third party wrote to the Board outlining the terms of a proposed conditional offer for the entire ordinary share capital of your Company. The Board immediately set up a subcommittee consisting of Non Executive Directors, appointed financial and legal advisers so that we could fully assess this approach and any offer that might be made. The Board, having assessed the approach and on the recommendation of our advisers, informed that party that the indicative offer was insufficient. Discussions continued and that party subsequently increased its proposed conditional offer on May 11th...

On 13th May 2011 an expression of interest was received from a consortium which included our major shareholder Fiordland Investments Limited. The terms of a proposed conditional offer were also received from this consortium on June 7th.

I must stress that both approaches were and are highly conditional. However, in an effort to progress matters and to establish if an unequivocal firm offer, at a price which could be recommended by your Board and our advisers can be secured, we have offered both parties an opportunity to proceed with confirmatory due diligence. Discussions regarding the conduct of this process are ongoing.

Your Board is conscious that such a process must be engaged in with caution as sharing information which could be commercially sensitive and confidential and could carry with it a risk to the business and, therefore, to all shareholders. However your Board is also conscious that we must fully explore all avenues to maximise shareholder value.

Update on trading

Our initial objective of building highly stable revenue streams with longevity has been achieved. Our growth strategy of building these businesses and our goal of occupying the leading position in our chosen markets remain our focus. Our Balance Sheet strength gives us the scope to pursue our growth plans.

As per our recent Interim Management Statement (May 19th), the Group has had a good start to the year and we remain pleasedwith trading to date. Your Board is confident in the financial and trading prospects of the Group

Note

The Directors of IFG (excluding Peter Priestley) accept responsibility for the information contained in this announcement. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this announcement is in accordance with the facts and does not omit anything likely to affect the import of such information.