Expression of interest ups IFG shares 12%

Shares in financial services group IFG rose by 12% yesterday, on the back of it announcing that it has received an expression of interest in its international corporate trustee services division.

Management at IFG — which is in a “closed period” ahead of the publication of its full-year, 2011results at the end of this month — said it had received an unsolicited expression of interest in the division on the back of recent share movements.

The interest was most notable in Thursday’s 5% rise in IFG’s share price, which wasn’t viewed as being wholly unusual.

“It should be carefully noted that the approach is recent, at an initial stage and is subject to significant conditionality and caveats,” the group’s board said in a statement to the stock exchange.

“As such it may or may not advance, and no assurance can be given that a formal offer will emerge.”

The international corporate trustee services division comprises IFG’s business interests in Britain, Cyprus, Switzerland, and Ireland.

Contributing 29% of group revenue and 53% of operating profit in the first half of last year, it focuses on personal and corporate taxation, trust administration and fund administration services.

While takeover talks regarding IFG, as a whole, broke down last September, management had been continuing to invest in this division — which has been growing both organically and via acquisition — with a view to expanding into the Far East, as well as other parts of Europe.

Back in November, IFG said that it had been seeing a steady group performance, despite the challenging trading conditions. It added that it remained on course to meet full-year targets, driven by a strong first half, but had seen a marginal slowdown during the second half of the year.

Despite steadily rising for most of the day, IFG’s share price closed in Dublin at €1.38, representing a final daily increase of 10.4%.