Leeds-based International Personal Finance (IPF) said on Wednesday that it is in advanced talks with US specialty finance firm BasePoint Capital about a possible takeover worth 223.8p per share or £490 million.

The Leeds firm said the possible offer is at a value that its board “would be minded” to recommend unanimously to IPF shareholders.

IPF said it provides “affordable credit products and insurance services to underserved consumers across nine markets.”

Also on Wednesday, IPF said its half-year profit before tax rose 5.5% to £49.9 million “ahead of internal plan, driven by excellent credit quality and good growth momentum across all our divisions.” Interim dividend rose to 3.8p per share, an increase of 11.8%.

IPF said: “The board of International Personal Finance plc announces that it is in advanced discussions with BasePoint Capital LLC, a leading provider of asset-based financing in the United States to specialty finance companies, regarding a possible cash offer by a wholly-owned subsidiary of BP PMKN LLC, an entity in the BasePoint group, to acquire the entire issued and to be issued share capital of IPF.

“Under the terms of the possible offer IPF shareholders would receive cash consideration of 220 pence per IPF share and would be entitled to retain the interim dividend of 3.8 pence per IPF share, announced by the company today, in relation to the period ended 30 June 2025.

“Accordingly, the Possible Offer represents a total value of 223.8 pence per share to IPF shareholders.”

The total value of the possible offer represents a premium of 24.9% to the closing IPF share price on July 29, 2025.

IPF shares rose 20% to £2.15.

“The board is confident in its strategy and in the company’s standalone future, recognising the strong performance to date outlined in the 2025 Half Year Results released today,” added IPF.

“However, it has carefully considered the possible offer with its advisers and has concluded that the possible offer is at a value that the board would be minded to recommend unanimously to IPF shareholders, should a firm intention to make an offer pursuant to Rule 2.7 of the code be announced on such financial terms, subject to the agreement of all other terms and conditions of an offer …

“There can be no certainty that any firm offer for IPF will be made even if the pre-conditions are satisfied or waived. A further announcement will be made in due course …

“Rule 2.6(a) of the Code requires that BasePoint, by no later than 5.00 p.m. on 27 August 2025, being the 28th day following the date of this announcement, either announces a firm intention to make an offer for IPF in accordance with Rule 2.7 of the Code or announces that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.”