Credit lender makes takeover approach
CREDIT lender International Personal Finance (IPF) has made a takeover bid to MCB Finance for a cash offer for the business.
AIM-listed MCB Finance Group is a leading online provider of short and medium-term loans to customers in Finland, Estonia, Latvia, Lithuania and Australia. It is based in Estonia.
Leeds-based IPF outlined last month that the development of a digital lending proposition is one of its key strategic priorities. This morning, IPF said the proposed acquisition of MCB would enable it to use the experience MCB has gained since it began operating in 2006 to accelerate the development of IPF’s digital lending business and it would also expand IPF’s range of new digital products and distribution channels. In addition, it would increase IPF’s geographical footprint with a proven business model in a manner that is consistent with IPF’s declared strategy.
In a statement to the markets this morning, MCB said this is not an announcement of a firm intention to make an offer under Rule 2.7 of the Code and, accordingly, there can be no certainty of an offer being made for MCB by IPF, nor as to the terms of any offer. This announcement is not being made by MCB with the agreement or approval of IPF.
IPF is now required, by not later than 5pm on December 16 2014, either to announce a firm intention to make an offer for MCB or announce that it does not intend to make an offer.
Earlier this year, IPF reported record half year profits. In the six months to the end of June, the Leeds-based business increased pre-tax profit by 11% to £47.1m as well as boosting customer numbers by 7% to 2,607m and entering into Spain for the first time.
