Shares in International Personal Finance (LSE:IPF) rose 5% to 232.25p after the company agreed to be acquired in a £543 million all-cash deal led by BasePoint Capital, bringing nearly two decades as a London-listed business to an end.
Under the terms of the recommended offer, shareholders will receive 235p in cash for each share and will also retain the final dividend of 9p.
The bid values the group at a premium of 31.1% to its closing share price on 29 July, the last trading day before the formal offer period began, and more than 60% above average prices over the past year.
IPF operates consumer lending businesses in nine countries across Europe and Mexico, providing small-sum loans to customers who often lack access to mainstream banking.
Although listed and headquartered in the UK, it has no domestic customers, having been demerged from Provident Financial’s international arm in 2007.
The board, advised by Stephens, said the offer was fair and reasonable and has unanimously recommended that shareholders back the deal, citing the persistent gap between IPF’s valuation and those of comparable lenders.