11th Mar 2019 08:28
LONDON (Alliance News) - Sub-prime lender Provident Financial PLC on Monday reiterated its view that the offer for the company received by Non-Standard Finance PLC is "strategically and financially flawed".
Furthermore, Provident argued that the offer presents significant risk in terms of both execution and shareholder value.
Therefore, Provident's board continued to "strongly" urge shareholders to take no action in respect of the offer.
Provident Financial Chair Patrick Snowball said: "The information contained within the Non-Standard Finance offer document does nothing to change the board's view that the offer is not in the interests of all shareholders and lacks both commercial logic and regulatory understanding.
"NSF has not addressed the concerns that have been raised and they continue to make financially unsound proposals such as the sale of Moneybarn, the sale or closure of Satsuma and the demerger of NSF's Loans at Home business. This Offer does not reflect that times have changed and ignores the significant progress we have made with our customers, staff and regulators over the past 12 months."
He concluded: "We strongly believe that the turnaround of Provident is well underway - we have a clear strategy that is already delivering tangible results. The NSF offer risks jeopardising Provident's turnaround and presents risks to shareholder value which have not been addressed."
Non-Standard Finance approached the company with an hostile all-share takeover offer worth GBP1.3 billion in February.
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