International Personal Finance makes offer for MCB Finance

18th Nov 2014 08:07

International Personal Finance (IPF) has made a formal cash offer to take over AIM-listed MCB Finance Group to strengthen its digital lending capabilities. IPF said the proposed acquisition would enable it to use MCB's "rich experience" to "accelerate the development of IPF's digital lending business", something it last month named as one of its strategic priorities.The FTSE 250 company also said such a move would expand its range of new digital products and distribution channels.It added: "In addition, it would increase IPF's geographical footprint with a proven business model in a manner that is consistent with IPF's declared strategy."Shares in MCB, which had a market capitalisation of less than £10m at close on Monday, were up 20% on Tuesday morning to 62.8p.MCB, which confirmed the discussions with IPF were only at the "preliminary" stage and further announcements will be made as appropriate, has for some time been in discussion with its principal shareholders and bondholders regarding an equity fundraising and the refinancing of its senior and subordinated debt facilities, which mature on 7 March 2015.