0 £0.00
This item was added to your basket

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

Provident Financial rebuffs “irresponsible” Non-Standard Finance bid

Executives at doorstep lender Provident Financial have rejected an “unsolicited” £1.3bn takeover bid by rival Non-Standard Finance.

The lender, which alongside its home credit offering owns Vanquis Bank and Moneybarn, rejected the offer in bullish fashion after receiving the offer on Friday.

 

In a statement released on Monday, February 25, Provident branded the approach “unsolicited and highly opportunistic”.

 

The Provident statement added: “The board considers that this hostile offer represents an irresponsible approach in the context of a financially regulated business which is recovering from a period of substantial instability. the board believes that this offer could have a negative and destabilising impact on its stakeholders, including its customers, for a considerable period of time.”

 

Provident chairman Patrick Snowball said the offer did not represent the value of the company and its prospects and said he and his colleagues had a number a concerns over the all-share offer.

 

John van Kuffeler, chief executive of Non-Standard Finance, said: “We have recognised the strong logic and value creation potential of a combination with Provident for some time and hence approached the Provident Board with a proposal in January last year. That approach was rebuffed and since then Provident has further lost its way.

 

“However, Non-Standard Finance has extensive management expertise and experience, and the correct strategy to turn Provident around and release significant value by combining it with our own businesses for the benefit of customers, employees and investors.”

 

NSF said it would look to sell Provident’s car finance arm, Moneybarn, which is still under investigation by the Financial Conduct Authority (FCA).

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

KPMG administrators appointed to Jamie Oliver’s restaurant group

KPMG administrators appointed to Jamie Oliver’s restaurant group

Tesco Bank to pull out of mortgage market

Tesco Bank to pull out of mortgage market

Equifax moves to new City of London office at Bank

Equifax moves to new City of London office at Bank

Upcoming events

Car Finance Conference

Car Finance Awards

Collections & Vulnerability Summit

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group