Davy weighs Saunderson House deal as IFG sells
Davy Stockbrokers is weighing a potential purchase of IFG's wealth-management business Saunderson House, the Sunday Independent understands.
IFG has put the business up for sale, despite saying it "continues to perform strongly, winning clients and growing assets under advice".
"The board, in consultation with its advisers, has however concluded that greater value for shareholders may be created by a sale of Saunderson House.
"In this regard, we have received a number of approaches. Discussions are at a preliminary stage. The group will consider a sale if appropriate value for shareholders can be achieved," IFG said in a trading update last Friday.
Davy declined to comment. It recently acquired Danske Bank's wealth-management business in Northern Ireland, with chief executive Brian McKiernan saying the deal "reflects an ongoing trend of consolidation and specialisation of wealth-management services in favour of providers of scale".
"We expect this trend to continue and we see continuing opportunities for appropriate bolt on acquisitions," he added.
Saunderson House had adjusted operating profit of £7.1m at year-end 2016, with nearly 2,000 clients and £4.6bn under its advice.
Sunday Indo Business