Non-Standard Finance has called off its hostile £1.3 billion offer for doorstep lending rival Provident Financial after failing to gain enough backing for the bid.
Non-Standard Finance (NSF) said due to the level of support for the deal, the merged group would “not have sufficient regulatory capital on a consolidated basis at completion due to the expected level of minority interests at that point”.
It comes after asset manager Janus Henderson became the latest investor to publicly oppose the bid for Provident Financial Group, saying on Tuesday it did not intend to accept NSF’s offer.
John van Kuffeler, NSF’s group chief executive, said: “I am very disappointed that despite our best efforts customers, employees and shareholders will not now benefit from our transformation plan to build a brighter future by combining Provident with NSF.”
He added: “NSF will continue to focus on delivering value to its customers, employees and shareholders by providing a helping hand to the 10-12 million UK consumers that are either unable or unwilling to access mainstream credit.”
NSF expects to pay transaction fees for the pulled bid of between £10 million and £10.5 million, excluding VAT, which it said was at the lower end of its estimated range.