Cofunds: Our shareholders do not want to sell

Cofunds has denied its backers want out after a report emerged that shareholder L&G has made an offer for the platform.

According to the report, L&G group executive director of savings Mark Gregory wrote to former Cofunds chief executive office Charlie Eppinger last month expressing an interest in buying the firm in a deal valuing the supermarket at up to £200m.

L&G has a 25% stake in Cofunds, with IFDS owing 24% of the platform and Newhouse Capital holding 18%. Fund managers Threadneedle and Jupiter own 20% and 10% respectively whilst Prudential owns 3% of the platform.

But Cofunds sales and marketing director Alastair Conway (pictured) said the platform's shareholders do not want to sell their stakes.

"The shareholders believe the best way of delivering long-term value to the business is to deliver the strategy we have been talking about for the last six to eight weeks and they are not looking to sell the business."

Conway added the recent speculation is a symptom of the platform's success.

"We are doing pretty well at the moment - the numbers are good, we are making money," he said. "We are not surprised at the interest we attract which has come about as we have moved into profitability over the last few years."

Earlier this year, L&G ended its exclusivity deal with Cofunds for the distribution of its bond and pension wrappers.

Conway said the platform still has a "very good" working relationship with L&G.

"They have products on our platform, we also power their investment platform and they are a very important provider of services and customer of Cofunds."

Meanwhile, an IFA using Cofunds said he "wants to know more" about the reported deal.

"If L&G were to be the sole owners of Cofunds we would have questions," he said. "This whole thing does throw up some questions - what would L&G's plans in the intermediary space be?"

He added: "The big question is about IFDS who own 24% and supply the back office to Cofunds and are a fund administration business. How likely would they want to relinquish their share?"

Meanwhile, another industry figure said £200m undervalues the platform.

"It does not seem like the most generous amount you have ever seen," he said.

L&G declined to comment.