James Hay buy-out deal moves a step closer

A takeover deal for James Hay Partnership has moved a step closer after the company invited two interested parties to carry out due diligence on the SIPP provider.

The two parties - one an unnamed business, the other a consortium led by a major shareholder of James Hay parent company IFG Group - are carrying out 'confirmatory due diligence' on the company.

This is better known as the stage when firms move away from considering why they should buy a company, to looking for reasons why they should not.

Details of the development were revealed at IFG Group's annual general meeting.

IFG Group received a proposed conditional offer from a third party to buy the company on 21 April. The board rejected this offer but another, more favourable offer was made on 11 May, the board said.

On 13 May, a consortium of parties including major IFG shareholder Fiordland Investments submitted an expression of interest in buying the company, and on 7 June, the consortium submitted a proposed conditional offer for IFG.

The board stressed today both approaches are "highly conditional", but said it had invited both parties to proceed with confirmatory due diligence on their proposed deals.

IFG Group bought James Hay in 2009 and merged the SIPP provider with the IPS Partnership to create the James Hay Partnership in 2010.

James Hay Partnership handles 40,000 clients, £12bn in funds and works with 8,000 IFAs.