International Personal Finance LON:IPF, the London-listed home credit provider, has said it is prepared to recommend a takeover by US investment firm BasePoint Capital, after receiving an improved indicative proposal valuing the company at 235p per share and allowing investors to retain a future dividend of up to 9p. But the board warned there is still no certainty a firm bid will emerge as BasePoint races to finalise its funding package.
The latest approach, disclosed this week, marks the third time this year that BasePoint has revised its potential offer for IPF. Discussions were first made public in July, when the company confirmed that the parties were in talks regarding a possible cash proposal. In September, IPF said it had received an increased possible offer that would have paid shareholders 235p per share while allowing them to keep the 3.8p interim dividend declared on 30 July. That payout was made on 26 September.
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Under the further revised proposal, IPF shareholders would again receive 235p per share in cash. But in addition to retaining the interim dividend already paid, eligible shareholders would be permitted to keep any final dividend declared for the financial year ending 31 December 2025, up to a cap of 9p per share. The final dividend is expected to be announced in February 2026 alongside the company’s full-year results.
After reviewing the latest terms, the IPF board said it would be “minded to recommend unanimously” the proposal to shareholders, should BasePoint announce a firm intention to make an offer under Rule 2.7 of the UK Takeover Code. The endorsement remains subject to agreement on all other terms and conditions.
Takeover Panel grants BasePoint extension
BasePoint has completed due diligence and secured internal approvals, including sign-off from its own board, IPF said. However, the US firm has not yet secured the external financing required to table a binding offer. It has asked IPF for additional time to conclude those arrangements, prompting the UK company to request an extension from the Takeover Panel.
The Panel has granted the extension, allowing BasePoint until 5pm on 17 December to either declare a firm offer or walk away. In the latter case, the announcement would be treated as a statement of no intention to bid under Rule 2.8.
IPF emphasised there is “no certainty that any firm offer… will be made even if the pre-condition is satisfied or waived”, underscoring the conditional nature of the discussions. The company will remain in an offer period under the Takeover Code, and shareholders were reminded of their ongoing disclosure obligations.
The US firm has reserved the right to make a lower or less favourable offer under certain circumstances, such as agreement from IPF’s board, or if a rival bidder emerges with a lower-valued proposal. It also said it may adjust its bid to reflect any dividends above the permitted level, and could vary the mix of consideration should a formal bid be made.
Further updates will be provided “as and when appropriate”, IPF said, as investors await clarity on whether one of the UK’s longstanding sub-prime lenders is set to change hands.
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