Bregal Capital in exclusive talks with Irish group IFG

PRIVATE equity firm Bregal Capital entered into exclusive talks with Irish financial services company IFG Group yesterday over a possible €231m (£204m) buyout.

Dublin-based IFG said Bregal Capital, which is already a backer of Lloyd’s insurance company Canopius, had proposed making a cash offer of €1.80 for each IFG share and would also pay a dividend.

Bregal’s proposal is subject to additional due diligence and conclusion of banking facilities, IFG said.

IFG has agreed to work exclusively with Bregal for up to six weeks during this due diligence period, with the exclusivity due to expire on 10 October. In June, it said it was talking to two potential buyers.

IFG, a pensions adviser and administration expert, also said its pre-tax profit for the first half of the year jumped to £7.1m, up from an £0.1m loss a year ago. Revenues rose about 15 per cent to £56.3m compared with 2010, IFG said.

London-based Bregal has €3bn in committed funds largely invested in financial services companies.