Financial services group IFG will spend more than €30 million (£23.6 million) in the next three months acquiring up to three independent financial advisers in the UK.
Chief executive Mr Richard Hayes confirmed the plans as IFG raised £20 million sterling (€32 million) in seven-year notes, which have equity warrants attached. It is understood that the entire £20 million was provided by a single British institutional investor, Prudential M&G.
The notes have warrants attached which allow the holders to acquire 4.35 million IFG shares at €3.75 each - equivalent to just under 7 per cent of the current share capital. While Prudential M&G will start off owning all the warrants, the fact that the notes are traded on the private debt market means the warrants could end up being dispersed among a number of holders.
Mr Hayes said IFG was in discussion with potential vendors in the British IFA sector and that, subject to due diligence and agreement on terms, two or three acquisitions would be completed over the next few months. He said most of the £20 million sterling would be used for the acquisitions. "Replacing short-term debt with long-term debt does not make a lot of sense," he said.
IFG plans to develop a nationwide chain of independent financial advisers in the UK. Over the past three years the group has spent almost €60 million on acquiring groups in the UK, including: almost €20 million for Berkeley Jacobs; €16 million for the ISA Shop; and €11 million for Saunderson Ventures.
Over the last year, the UK market has also attracted Bank of Ireland. It has spent almost €300 million on three UK acquisitions in the sector - Chase De Vere, MoneyXtra and Willis National.
