13th May 2019 11:15
LONDON (Alliance News) - Non-Standard Finance PLC and Provident Financial's bickering continued into another week, with Non-Standard Finance labelling Provident "irresponsible" over the comments Provident made last week.
In March, Non-Standard Finance launched a GB1.3 billion hostile takeover for larger rival Provident, opening a long war of words between the two home credit lenders with common founders.
Non-Standard Finance also said it is now in the final stages of discussions with the UK Competition & Markets Authority over when it can make a filing.
"The Non-Standard Finance board expects to be able to make the CMA filing shortly, at which point the 40 working day initial period for the CMA's Phase I investigation will commence, during which Non-Standard Finance will continue to engage with and assist the CMA in its consideration of the offer. We fully expect to reach an agreement in principle on an appropriate remedy with the CMA during the initial Phase I review process," said Non-Standard Finance.
Non-Standard Finance said "any potential concerns" the CMA might have are likely to be "limited" to home credit - where Non-Standard Finance has previously noted a "clear cut remedy" for any potential competition concerns, by divesting its Loans at Home business.
"A de-merged Loans at Home will be independent of Non-Standard Finance, and continue to be a viable and effective competitor for home credit, especially given its strong market position as the UK's third largest provider of home credit," added the company.
In the past week, Non-Standard Finance said Provident has made "incorrect assertions" about Non-Standard Finance's capital position which, Non-Standard Finance said, "were completely unfounded, based on invalid premises and incorrect assumptions".
Provident also made a statement suggesting there was a UK Financial Conduct Authority investigation into Non-Standard Finance's guarantor business, which Non-Standard Finance stressed was "categorically not true".
"We believe these are the actions of a Provident management team which has run out of ideas," said Non-Standard Finance.
Non-Standard Finance reiterated its belief that its offer is the "best option" for Provident shareholders and urged them to accept the offer before the deadline on Wednesday.
Shares in Non-Standard Finance were down 0.2% Monday at 50.60 pence each. Provident was trading 0.6% lower at 501.00p.
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PFG.LNSF.L