News

3
Apr

IFG back Saunderson House following review of offers

Following a previous report by Gunner & Co. reviewing the prospective sale of Saunderson House (You can find that report here), 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 received a number of non-binding indicative 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.