Shares in International Personal Finance (LSE:IPF) surged 18% on Wednesday after it confirmed it is in advanced takeover talks with US-based BasePoint Capital.
The possible cash offer values the consumer finance business at £490 million, or 220p per share, plus the right for shareholders to keep the interim dividend of 3.8p.
IPF said it is confident of its standalone prospects but is “minded to recommend” the offer, should BasePoint make a firm bid on these terms, following due diligence and agreement on other details.
The deal would give shareholders a 38% premium to the three-month average share price, and over 54% above the average price for the past six and twelve months.
The stock rose 38.8p to 213p.