12th Apr 2019 09:07
LONDON (Alliance News) - Provident Financial PLC said Friday it is "gravely concerned" with Non-Standard Finance PLC's lack of response to Provident's questions over Non-Standard Finance's offer, adding the offer remains "highly unattractive".
Provident, an unsecured sub-prime lender, has on several previous occasions criticised the GBP1.3 billion hostile offer, made in February, from smaller rival Non-Standard Finance.
Under the offer, Provident shareholders will receive 8.88 new Non-Standard Finance shares for each Provident share held.
On Friday, Provident said Non-Standard Finance's failure to respond to questions raised by Provident are "gravely concerning".
Provident said: "Provident shareholders deserve clarity to enable them to make an informed decision on the merits, or otherwise, of the offer."
Provident added: "The Provident board continues to have significant concerns about the offer, not least because Non-Standard Finance has repeatedly made pre-tax losses on a statutory basis, its share price is near an all-time low, and it would opportunistically benefit from the relative financial strength of Provident."
Shares in Provident were down 0.5% Friday morning at 519.10 pence, Non-Standard Finance was 0.1% higher at 52.63p.
Non-Standard Finance has received valid acceptances from 128.5 million Provident shares, equivalent to 51% of Provident's issued capital. However, it would need acceptances from 90% of shareholders for a successful takeover.
Non-Standard Finance's all-share offer is worth GBP1.3 billion.
Provident noted, Friday, the "vast majority" of acceptances have come from shareholders who also hold shares in Non-Standard Finance and "therefore have a different perspective as to the merits of the offer than that of other shareholders".
The Competition & Markets Authority is currently investigating the deal and the Financial Conduct Authority has also raised concerns about any possible relaxation of controls or reintroduction of Provident's repayment option plan, given the plan incurred a fine and redress exercise of more than GBP170 million.
Related Shares:
PFG.LNSF.L