Mailings

Friday 12 February 2010

James Hay Acquisition

I wanted to keep you up to date on the progress of the proposed acquisition of James Hay by our parent company, the IFG Group plc.

Adding the James Hay experience and scale to the existing success of IPS will see us become not just the best but the biggest SIPP provider in the UK. The strength of the combined business will help us in the development and expansion of the self administered pensions and wrap markets.

We strongly believe that the James Hay operation has massive potential. Although the business has underperformed in recent years, it retains the ability to lead the industry given a new focus and direction.

A New Direction

Our success at IPS has been based around the certainty that SIPP and wrap adoption and management has been driven almost entirely by advisers such as you. In order to keep your clients satisfied, you require flexible products and excellent service. By providing these two crucial elements we will build a business that can justify its position as the market leader.

We are also very conscious of our own duty to maintain the high levels of service IPS aspire to deliver to you. These are exciting times for our business, but we will not forget it is through your support that we have this potential opportunity to grow.

Progress

To date all aspects of the acquisition are progressing well.

At an extraordinary general meeting of the IFG Group plc board held on 4th January in Dublin, shareholders voted overwhelmingly in favour of the acquisition of James Hay for £35 million. This will be funded by a new issue of £45 million shares which also received shareholder approval.

We are awaiting approval from the FSA and it would seem likely that, if everything goes according to plan, completion would be weeks rather than months away. I will keep you up to date about the exact date when I get a clearer indication.

Changes

If the acquisition goes ahead as planned, our first task will be to remove the Santander name from the James Hay business and communicate to their clients and intermediaries that it is under new ownership. At this stage we do not anticipate making major changes to the organisation. Over the following months James Hay and IPS will continue to operate as separate businesses with their own brands, products, sales and servicing functions.

During this time we will undertake an intense period of research and planning, resulting in a thorough assessment of the James Hay business; its strengths and its weaknesses. As part of this review I will be asking for your views on the products and service that an integrated IPS and James Hay business should be providing to you.

I will be writing to you on a regular basis to keep you informed of the progress of the acquisition and the subsequent development work.

Tim Sargisson
Managing Director