Provident Financial suitor wins more than 50% support for hostile takeover
Provident Financial suitor Non-Standard Finance has said it has secured commitments for its £1.3 billion hostile takeover representing just over half of shares in the doorstep lender.
Non-Standard said it has acceptances for 50.7% of Provident’s shares, although this includes the previously announced support from Woodford Investment Management, Invesco Asset Management and Marathon Asset Management, who together hold a 49% stake in Provident.
The acceptance condition for the offer is currently not less than 90%, but Non-Standard Finance (NFS) can vary the level and said further announcements on this will be made in due course.
Non-Standard chief executive John van Kuffeler said: “We are delighted to have received acceptances for a majority of Provident’s shares.
“This represents a clear validation of the experienced NSF management team and of our transformation plan to unlock substantial value for shareholders, as well as providing us with a platform to complete this transaction and get on with the job of implementing our plan.”
But Provident insisted it is continuing to explore “all appropriate alternatives” to maximise value for shareholders and continues to advise its shareholders to “take no action”.
It added: “The Provident board continues to have very material concerns about the strategic, operational and financial merits of the NSF offer and is keen to ensure that all of its shareholders, including those that do not have a shareholding in NSF, have full clarity with respect to the terms and implications of the NSF offer.”