IFG’s James Hay bid approved

IFG’s acquisition of British pensions company James Hay Holdings, received shareholder approval yesterday and is now likely to be formally concluded within the next four-to-six weeks.

The Irish financial services group’s shareholders voted in favour of the deal – and the launch of an open share offer aimed at raising €50 million to partly fund the buyout – at an extraordinary general meeting (egm) in Dublin, yesterday.

However, the €38m deal still requires regulatory approval – primarily from the Financial Services Authority (FSA) in Britain – and that is expected to be granted by early February. IFG’s management is not expecting any problems with the regulatory approval of the deal, while the open offer will close at 11am on Thursday.

IFG is buying James Hay from Santander Private Banking (UK). The move will give the Irish group a 23% market leading position in the SIPP (self invested personal pensions) sector in Britain.

While no further acquisitions are likely in the short-term, speculation is rife that IFG will add to its international trustee business – which makes up around 40% of total group revenue – through acquisition in the Far East.

Speaking yesterday, however, group chief executive Mark Bourke said that any significant investment in the Far East remains a long-term matter.

However, he did add that it remains “on the cards” that IFG will develop a presence in the Far East, with Singapore being the obvious location. It remains a possibility that the group may make a small scale investment in gaining a ground-level presence in that area within the next year and a half.

Regarding the Irish market – where IFG mainly deals in the pensions and advisory areas – the company remains of the view that conditions remain difficult but is still confident of fulfilling its immediate strategy of building an Irish business which mirrors that of its British division.