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Provident Financial shareholder M&G Investments rejects NSF hostile takeover bid

M&G Investments said it is supportive of Provident’s current strategy

Provident
Shareholders that make up 20.2% of Provident have said they would reject the deal

Provident Financial PLC (LON:PFG) has received support from another shareholder in its battle to fend off a hostile takeover bid from rival sub-prime lender Non-Standard Finance PLC (LON:NSF).

M&G Investments, which owns a 1.7% stake in Provident, has joined fellow shareholders Schroders and Coltrane in confirming it will reject the deal.

READ: Provident trumpets Schroders opposition to NSF offer

“M&G is supportive of Provident’s current strategy and does not believe that a combination with NSF and subsequent break up of the enlarged group will create value for Provident shareholders,” M&G said in a statement on Tuesday.

Shareholders representing about 20.2% of Provident have said they are against the deal.

However, earlier this month NSF lowered the level of acceptances it needed to push forward with its takeover plans to 50% from 90% after winning over investors with 53.53% of its shares.

Investors Neil Woodford, Invesco and Marathon have supported the offer from the start and together own more than 50% of both companies.

NSF said Tuesday that the offer would become wholly unconditional on June 5, meaning Provident shareholders still have time to withdraw their acceptances.

However, Invesco, Woodford, and Marathon have committed not to exercise such withdrawal rights.

 

Quick facts: Provident Financial

Price: 175.6 GBX

LSE:PFG
Market: LSE
Market Cap: £445.35 m
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