NSF sets closing date for hostile Provident takeover bid

Investors in Bradford-based Provident will have until May 15 to register acceptances for the deal, a deadline that will not be extended.

NSF also said it has discussed its plans with the Financial Conduct Authority and Prudential Regulation Authority and expects that the associated conditions to the offer will be satisfied by June 5.

NSF’s bid for Provident is turning into a bitter war of words between the two subprime lenders.

Provident responded by claiming that NSF has "panicked".

A spokesperson for Provident said: "NSF's share price has plunged to an all-time low and their bid is under attack.

"They have set a deadline for acceptances that will deny shareholders the opportunity to see the outcome of the CMA review, as allowed by the Takeover Panel’s decision to freeze the bid timetable, and means if the offer were to close shareholders would bear the very real risk and potential costs of that process."

Provident claimed that NSF has still not filed with the CMA.

“NSF has failed to address any of the substantive points Provident raised about their plans for Vanquis, Moneybarn, Loans at Home or Satsuma," the spokesman said. "Furthermore, the governance issues raised by their unlawful dividend payments highlights how unsuitable they are to run a business of Provident’s size and complexity. NSF fails to acknowledge their own record of consistent statutory pre-tax losses.

“Their offer – a 24 per cent discount to current the Provident share price – remains risky, flawed and value-destructive.”

The FCA has raised concerns about the deal, but NSF insisted that it has received "change of control approval" when required in the past, and it has never been the subject of "any sanction, fine or special supervision by any regulator".

This, according to NSF, is in "sharp contrast" with Provident, which it said remains under enhanced supervision and where all three of its business divisions have been subject to regulatory investigation, fines or other enforcement measures.

NSF has acceptances for over 50 per cent of Provident's shares, including from Woodford Investment Management, Invesco Asset Management and Marathon Asset Management, who together hold a 49 per cent stake.

However, the level of support has not moved upwards for several weeks.

John van Kuffeler, NSF chief executive, 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 per cent of Provident's shares, we urge all remaining Provident shareholders to accept our offer without delay."

Provident chairman Patrick Snowball has accused NSF of "unlawful" activity and urged shareholders to take no action over the "dreadful deal" on the table.

He has claimed that NSF's £1.3bn offer for the firm resembles "more of a coup d'etat than a hostile takeover".