4th Jun 2019 17:18
LONDON (Alliance News) - Provident Financial PLC said Tuesday that shareholder Janus Henderson Investors will not accept the hostile takeover bid from Non-Standard Finance PLC.
Provident said it has now received statements of intent to reject the offer from Schroders PLC, Coltrane Asset Management, M&G Investments and Janus Henderson. Between them, they hold a 21.6% interest in Provident.
Janus Henderson holds an interest in 3.4 million of Provident's 253.4 million issued shares.
In a letter to Provident, Janus Henderson said it is "supportive" of Provident's current strategy, with the investment manager said it believes Provident is making "good progress".
Janus Henderson said it has "not been convinced of a compelling logic" for the merger of Non-Standard Finance and Provident.
Non-Standard Finance's GB1.3 billion offer for fellow sub-prime lender Provident has become unconditional - after Non-Standard Finance lowered its acceptance condition to 50% from 90%. So far, holders of 53% of Provident shares have taken up the offer, but these accepting Provident shareholders also collectively make up the majority of Non-Standard Finance shareholders, holding shares in both companies.
The deadline for the offer becoming wholly unconditional is Wednesday.
Non-Standard Finance launched its hostile bid for Provident in March, which has become increasingly acrimonious ever since. Provident has objected to the takeover, calling it "fraught with risks". In return, the bidder, has accused Provident of making "incorrect assertions" about Non-Standard Finance's capital position.
Provident reiterated its stance Tuesday afternoon calling the offer "significantly flawed and value destructive".
The Provident Board believes that the offer is significantly flawed and value destructive, and urges its shareholders to take no action in relation to the NSF offer.
Shares in Provident closed down 0.5% Tuesday at 446.00 pence each. Non-Standard Finance shares closed 2.9% lower at 47.00p.
Related Shares:
PrudentialSchrodersPFG.LNSF.L