Artemis Critiques £543m International Personal Finance Takeover

Artemis Warns Against IPF’s Takeover

Artemis, the largest shareholder in International Personal Finance (IPF), has voiced its opposition to a £543 million takeover of the UK-based lender. The shareholder warns that the London Stock Exchange could lose another valuable company if it succumbs to its US suitor, BasePoint Capital.

Artemis’ Stake in IPF

Artemis owns 13.7 per cent of IPF, a financial company that was spun out of doorstep lender Provident Financial in 2007. Artemis’ warning comes amidst concerns that public companies are being undervalued and bought on the cheap, while there is a lack of new companies joining the stock exchange through initial public offerings.

IPF’s Takeover Approach

Leeds-based company, International Personal Finance, received a takeover approach in July, and in December, it recommended that shareholders back the all-cash offer proposed by US speciality finance company, BasePoint Capital. IPF, with its 1.7 million customers, primarily operates in countries such as Poland, Hungary, Mexico and Estonia, offering credit services to those who typically face difficulties in receiving credit.

Shareholders’ Payout from the Deal

IPF shareholders will receive 235p for each share they own, a 31 per cent premium to the closing price of 179.2p in late July when the offer was first tabled. The shares are currently trading close to the sale price of 235p.

Future Scope for Financial Firms

However, Ed Legget, an Artemis fund manager, mentions that the worth of financial firms has increased since the offer was proposed. He believes there is scope for share prices to rise further this year, indicating a potential undervaluation in the takeover bid.

Shareholder Vote and Concerns

A shareholder vote on the takeover has been scheduled for February 11. In response to the trend of London-listed companies being taken over, Legget said, “Unlike Darwinism, it’s the strong that are getting picked off, not the weakest in most cases, which is leading to fewer small-cap international growth companies left.”

Takeover Trends in the UK

Investment bank Peel Hunt’s calculations show approximately 45 takeover bids for listed UK companies in 2024, while only five companies went public.

Impact of the Deal on IPF

IPF did not respond to requests for comment on Artemis’ criticism. However, the company stated earlier that the deal would enable it to offer new products and expand its operations in additional countries.

Read More US Economic News