10th May 2019 08:24
LONDON (Alliance News) - Provident Financial PLC on Friday said that almost all of its independent shareholders refused Non-Standard Finance PLC's hostile takeover bid.
Around 96% of Provident shares held by independent shareholders have not agreed to the offer, Provident said. They include FTSE 100-listed asset manager Schroders PLC, owner of a 15% interest in the company.
"Some eleven weeks since the launch of its unsolicited, nil-premium offer, Non-Standard Finance has only been able to secure approximately 2% incremental acceptances from Provident shareholders beyond those committed at the time of launch," Provident said.
It continued: "The Provident board believes that this is a clear signal that the offer has significant flaws, would be value destructive and is not in the best interests of independent shareholders."
Provident also reiterated its view that shareholders should take no action in respect of the "opportunistic and value destructive" offer.
In March, Non-Standard Finance launched a GB1.3 billion hostile takeover for larger rival Provident, giving way for a long war of words between the two home credit lenders.
Non-Standard Finance has received valid acceptances from 128.5 million Provident shares, equivalent to 51% of Provident's issued capital. However, it needs acceptances from 90% of shareholders for a successful takeover.
On Friday, Non-Standard Finance responded by saying: "Non-Standard Finance finds Provident's scaremongering, on the back of incomplete knowledge and poor judgment, to be deeply disappointing and, in the context of our offer, irresponsible."
"It is, however, entirely consistent with the Provident board's previous, repeated misjudgements with respect to its own financial position and prospects as well as its complete disregard for the views of shareholders holding over 50% of its share capital," it added.
Once again, Non-Standard Finance urged Provident shareholders to accept the offer by the May 15 deadline.
Provident Financial shares were trading 0.2% lower at 501.40 pence each Friday morning while Non-Standard Finance shares were down 1.6% at 50.80p.
Related Shares:
SchrodersPFG.LNSF.L