{"id":7807,"date":"2019-02-22T10:43:41","date_gmt":"2019-02-22T10:43:41","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/provident-financial-gets-1-3bn-bid-from-rival-nsf\/"},"modified":"2019-02-22T10:43:41","modified_gmt":"2019-02-22T10:43:41","slug":"provident-financial-gets-1-3bn-bid-from-rival-nsf","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/provident-financial-gets-1-3bn-bid-from-rival-nsf\/","title":{"rendered":"Provident Financial gets \u00a31.3bn bid from rival NSF"},"content":{"rendered":"\n
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\"Money\"Image copyright<\/span>
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Sub-prime lender Non-Standard Finance (NSF) has made a \u00a31.3bn takeover offer for rival Provident Financial.<\/p>\n

NSF boss John van Kuffeler was previously chief executive and chairman of Provident, a doorstep lender with a history of financial troubles.<\/p>\n

He said the deal would “create a market leader in non-standard finance”.<\/p>\n

NSF said the takeover was backed by more than 50% of Provident’s shareholders, including fund manager Neil Woodford, Invesco and Marathon.<\/p>\n

Investors must still vote on whether to approve the deal.<\/p>\n

Provident has seen its shares plunge after profit warnings and the resignation of a former chief executive.<\/p>\n

In January, it warned again that profits would be below analysts’ expectations. The group said it had seen a rise in bad debts at its Vanquis Bank arm and falling numbers of new accounts after clamping down on its lending.<\/p>\n

Fines and sanctions<\/h2>\n

Under the terms of the offer<\/a>, Provident shareholders would get 8.88 new NSF shares for each Provident share. <\/p>\n

Based on NSF’s closing share price of 58p on Thursday, the tie-up values Provident at \u00a31.3bn, or 511p per share.<\/p>\n

It is the second time NSF has approached Provident.<\/p>\n

Mr van Kuffeler 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.<\/p>\n

“However, NSF has extensive management expertise and experience, and the correct strategy to turn Provident around and release significant value by combining it with our own fast-growing businesses for the benefit of customers, employees and investors.”<\/p>\n

Provident is also recovering from a string of regulatory sanctions.<\/p>\n

The Financial Conduct Authority (FCA) fined Vanquis \u00a32m and ordered it to pay \u00a3168.8m in compensation for failing to disclose charges of its popular repayment option plan.<\/p>\n

Meanwhile, its Moneybarn car loan arm is under investigation by the FCA over how it treats borrowers who fall behind with payments.<\/p>\n<\/p><\/div>\n


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Source<\/a> by [author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Image copyright Getty Images Sub-prime lender Non-Standard Finance (NSF) has made a \u00a31.3bn takeover offer for rival Provident Financial. NSF boss John van Kuffeler was previously chief executive and chairman of Provident, a doorstep lender with a history of financial troubles. He said the deal would “create a market leader in non-standard finance”. NSF said … <\/p>\n","protected":false},"author":0,"featured_media":7808,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=7807"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7807\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/7808"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=7807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=7807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=7807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}