NSF extends Provident Financial offer deadline, urges shareholders to accept
Non-Standard Finance has extended the deadline for its £1.3bn hostile takeover offer for larger rival Provident Financial by a week to 15 May and urged the company's shareholders to accept it.
Financial Services
14,747.14
17:14 20/05/24
FTSE 250
20,873.33
17:14 20/05/24
FTSE 350
4,637.24
17:14 20/05/24
FTSE All-Share
4,590.38
17:13 20/05/24
Non-Standard Finance
0.04p
16:35 06/07/23
Vanquis Banking Group 20
63.50p
16:45 20/05/24
NSF has already received acceptances representing more than 50% of Provident shares from the three largest shareholders, Woodford Investment Management, Invesco Asset Management and Marathon Asset Management. It said on Monday that the offer and transformation plan will enable it to improve the product offering to and outcome for Provident's shareholders.
NSF chief executive John van Kuffeler said: "Our offer and transformation plan for Provident is compelling and will benefit customers and employees as well as unlock substantial value for shareholders.
"It represents a clear alternative to the status quo offered by the Provident board and, having already received acceptances from shareholders holding over 50 % of Provident's shares, we urge all remaining Provident shareholders to accept our offer without delay."
Non-Standard Finance expects the offer to become or be declared wholly unconditional by 5 June.
Under the terms of the transaction, Provident shareholders would receive 8.88 new NSF shares, valuing each of their shares at 403p.
Broker Peel Hunt said: "For Provident shareholders, in the event that the deal completes, our concern is on the execution risk around extracting value given a period of economic uncertainty that could especially impact the unsecured lending space as well as potentially depress the sell value of ‘non-core’ assets."
At 0900 BST, Provident shares were up 0.7% at 503.60p.