IFP Ifg Group Plc

TIDMIFP

RNS Number : 5343J

IFG Group PLC

03 April 2018

IFG Group plc ("IFG" or the "Group")

Update on Saunderson House

3(rd) April 2018

This announcement contains inside information.

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 (the "Board") received a number of non-binding indicative offers (the "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 GBP1.5m 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.

Enquiries:

IFG

John Cotter Group CEO Tel: +44 203 887 6181

   Mark Dearsley              Interim Group CFO                              Tel: +44 203 887 6181 

Joint Corporate Brokers

   Nicholas Harland                     Macquarie Capital (Europe) Ltd 

Tel: +44 203 037 2369

   Charlotte Craigie                     Goodbody Stockbrokers UC 

Tel: +44 203 841 6202

This information is provided by RNS

The company news service from the London Stock Exchange

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