3 Apr 2018 07:00
IFG Group plc ("IFG" or the "Group")
Update on Saunderson House
3rd April 2018
This announcement contains inside information.
IFG announced on 2 February 2018 that, following receipt of several unsolicited approaches for Saunderson House, it was considering whether a sale of the Business could create greater value for IFG shareholders.
Since then the Board of IFG (the "Board") received a number of non-binding indicative offers (the "Offers") for Saunderson House in line with market expectations. These Offers reaffirmed the strength of the Business, its leading market position and its attractive long-term growth prospects.
However, having reviewed the Offers in detail, including with the Board of Saunderson House, the Board has concluded that the Offers were not wholly aligned with the strategy of Saunderson House and would present significant execution risks that would likely create lower shareholder value than from retaining the Business. As a result, the Board has concluded that it is not in the best interests of shareholders of IFG to proceed with the sale process.
IFG is now focused on continuing the development of the Business, as well as putting in place short and long-term retention arrangements for the senior management and employees of Saunderson House. In this regard, a retention award of £1.5m will be provided in each of the 2018 and 2019 financial years.
The Group has started 2018 strongly, with profitability materially ahead of the same period in 2017. The Board believes that both businesses are well positioned for future growth and profitability.
Enquiries:
IFG
John Cotter Group CEO Tel: +44 203 887 6181
Mark Dearsley Interim Group CFO Tel: +44 203 887 6181
Joint Corporate Brokers
Nicholas Harland Macquarie Capital (Europe) Ltd
Tel: +44 203 037 2369
Charlotte Craigie Goodbody Stockbrokers UC
Tel: +44 203 841 6202