Weiss AM Builds 4% Stake in IPF Amid Tense Takeover Deadline

BOSTON, MA – December 12, 2025 – As the clock ticks down on a crucial takeover deadline, Boston-based hedge fund Weiss Asset Management has revealed a significant 4.17% economic interest in International Personal Finance plc (IPF), the UK-based consumer credit provider currently at the center of a protracted acquisition attempt by BasePoint Capital LLC. The disclosure, made public through a mandatory UK regulatory filing, highlights intensifying investor maneuvering as the deal approaches a critical juncture.

The position, valued based on recent dealings, was built entirely through cash-settled derivatives, a strategic move that gives the $10.7 billion asset manager exposure to IPF's share price without holding direct voting rights. This "shadow stake" surfaces just days before a December 17th "Put Up or Shut Up" (PUSU) deadline, by which BasePoint must either formalize its offer or walk away.

The High-Stakes Takeover Saga

International Personal Finance has been in the takeover spotlight since July 2025, when BasePoint Capital first tabled a possible cash offer. The acquisition drama has seen multiple twists, beginning with an initial proposal of 220 pence per share, which represented a nearly 25% premium at the time.

Following negotiations, BasePoint sweetened the deal in September, submitting a revised non-binding proposal of 235 pence per share in cash. Crucially, the board of IPF indicated it would be "minded to recommend unanimously" this improved offer to its shareholders, contingent on BasePoint securing the necessary financing and announcing a firm intention to proceed.

However, finality has remained elusive. The Takeover Panel, the UK's regulatory body for mergers and acquisitions, has granted several extensions to the PUSU deadline. The latest extension pushes the decision point to 5:00 p.m. London time on December 17, 2025. According to public statements, BasePoint has completed its due diligence and received internal approvals, with the final hurdle being the arrangement of financing for the offer. This prolonged uncertainty has created a fertile ground for sophisticated investors like Weiss Asset Management to take strategic positions.

A Derivative Play: The Strategy Behind the Stake

Weiss Asset Management's disclosure is notable not just for its size but for its structure. The entire 4.17% interest, comprising 9,127,682 reference securities, is held via Contracts For Difference (CFDs). These financial instruments allow an investor to profit from the price movement of an underlying asset—in this case, IPF's stock—without actually owning it.

This derivative-based approach is a common tactic for hedge funds operating in M&A situations. It offers several advantages:
* Economic Exposure: It allows the fund to speculate on the outcome of the takeover. A successful bid at or above the proposed 235p would likely yield a significant profit on the CFD position.
* Strategic Flexibility: Building a large stake through derivatives can be quieter and faster than accumulating physical shares on the open market, which can drive up the price.
* Avoiding Voting Entanglements: By not holding direct equity, Weiss avoids having voting rights, allowing it to maintain a purely economic position without getting drawn into potential shareholder battles or activist campaigns.

The regulatory filing shows Weiss was actively increasing its long position on December 11, purchasing CFDs referencing hundreds of thousands of shares at prices between GBP 2.08 and GBP 2.125. This suggests a belief that the company's value is, at a minimum, aligned with these levels, and likely higher should the BasePoint offer materialize.

IPF's Underlying Strength

The intense investor interest is underpinned by IPF's solid operational performance. The company, which provides credit to underserved consumers across Europe and Latin America, has demonstrated resilience and growth. In its third-quarter 2025 results, the group reported a 14% acceleration in customer lending and a return to customer growth, with its user base expanding to 1.7 million.

Financial metrics have been robust. Net receivables surpassed the £1 billion mark, and the company's cost-to-income ratio has improved. While the impairment rate has ticked up—an expected consequence of accelerated lending and new product investment—the company's core profitability remains strong. For the full year 2024, IPF posted a pre-exceptional profit before tax of £85.2 million and increased its dividend, signaling confidence from its management.

This strong performance makes IPF an attractive, cash-generative target. However, some analysts noted at the time of the initial bid that the premium offered by BasePoint seemed modest given the company's trajectory. One analyst from Shore Capital commented that the initial 220p offer was "a little disappointing," a sentiment that may have contributed to the subsequent price bump to 235p.

Transparency Under the Takeover Code

Weiss's disclosure is a direct result of the UK Takeover Code's Rule 8.3, which mandates transparency from any party holding an interest of 1% or more in an offeror or offeree company. This rule is designed to prevent the secret build-up of stakes that could influence the outcome of a takeover, ensuring a level playing field for all shareholders.

During an active offer period, the market receives a flurry of these Form 8.3 filings. Indeed, the Takeover Panel's disclosure table for IPF shows recent filings from numerous other major financial institutions, including Barclays, Nomura, Norges Bank, and Aberdeen Group. Each filing provides a puzzle piece, revealing the positions and dealings of significant market players.

For other investors and IPF shareholders, these disclosures are invaluable. They signal confidence (or a lack thereof) from sophisticated market participants and provide a clearer picture of the interests at play. Weiss Asset Management's decision to build a substantial long position is a clear signal of its conviction that IPF's shares hold value, whether through the finalization of BasePoint's bid or as a standalone entity if the deal falls through. All eyes now turn to the December 17th deadline, which will determine the next chapter for International Personal Finance.