IFG Group Dec 2009

As of December 2008, James Hay Holdings Limited ("James Hay") had £8.9 billion of SIPP Assets under Administration ("AuA") for approximately 33,400 SIPP clients. Canaccord Genuity originated the transaction for IFG Group plc ("IFG").

IFG has agreed to pay £35mlion in cash (€38,588,754) plus an additional adjustable payment for net assets. To fund the acquisition IFG proposes to raise approximately £50mlion through a placing and open offer via Davy its current broker. The transaction is subject to shareholder and normal regulatory approvals.

IFG's strategy is to grow its two core divisions: international corporate and trustee administration services and pension's administration/advisory services. The acquisition is transformational as it builds a second division of scale by adding James Hay to IFG's existing SIPP business, IPS. Moving forward, over 50 per cent. of the Group's future profits are expected to be generated from pension administration and financial advice, both attractive growth areas. It also shifts the geographical source of earnings towards the UK and offshore markets, strengthens the Group's balance sheet and is earnings enhancing.

Canaccord Genuity acted as financial advisor to IFG Group plc.