IPF to buy MCB Finance for £24m

International home credit business provider International Personal Finance (IPF) is buying Baltic credit supplier MCB Finance Group for about £24m in an agreed deal.

MCB Finance is an online provider of short and medium-term loans to customers in Finland, Estonia, Latvia, Lithuania and Australia.

IPF will acquire the entire capital of MCB, valued at about £23.8m, via a court-sanctioned cancellation scheme of arrangement.

However, IPF could also carry out the acquisition via a takeover or a transfer scheme of arrangement, the company said.

"MCB brings new digital products, distribution channels and an experienced management team, all of which complement IPF's existing business," said IPF chief executive Gerard Ryan.

Under the agreement, MCB shareholders will receive 125p in cash for each scheme share, representing a premium of about 138% to the closing price of 52.5p per share on 17 November – the last business day before the offer period began.

"The directors believe IPF's offer represents good value for MCB shareholders, striking an attractive balance between the future opportunities and risks facing the business, and the directors have therefore decided unanimously to recommend the offer,” said MCB chairman Anton Mayr.

“We believe IPF's management, industry experience and balance sheet strength will increase the options available to MCB and enhance its future growth prospects"

At 09:25 on Friday, MCB shares were up 4.19% to 87.00p, while IPF shares rose 0.71% to 451.20p.