International Personal Finance (LSE:IPF) has welcomed a higher cash offer proposal from US-based BasePoint Capital, of 235p per share, up from the 220p outlined in July.
Shareholders in the consumer finance business would also remain entitled to the 3.8p interim dividend declared in July and payable on 26 September.
The board said the revised terms are at a value it would be minded to recommend unanimously, should a firm offer be made.
BasePoint has completed due diligence, though the proposal remains subject to customary pre-conditions, including board approval.
The UK takeover panel has extended the 'put up or shut up' deadline to 5pm on 22 October 2025. There is no certainty a formal offer will be made.
Last month, IPF called for the previous PUSU deadline to be pushed back to today in order to allow more time for talks.
Talks were first revealed in July, with the London-listed firm saying its board was confident of the prospects as a standalone company but was "minded to recommend" that lower offer, which would have valued the firm at £490 million.