LONDON (dpa-AFX) - Non-Standard Finance plc or NSF said that Provident Financial plc.'s (PFG.L) today announcement provides no new information about Provident itself and in particular says nothing about what steps Provident's Board plans to take in order to address the significant financial, operational and cultural challenges facing the company. It also brings into focus the NSF Board's view that the Provident Board has limited operational experience in the non-standard finance sector and does not understand the key operational issues involved in managing a business like Provident.
The NSF Board said it is surprised that the Provident Board considers it necessary to postpone the announcement of its full-year 2018 results by two weeks to 13 March 2019, a highly unusual move which delays the opportunity for shareholders to judge Provident's recent performance.
John van Kuffeler, the founder and Chief Executive of NSF, said, 'Provident's decision today to delay the announcement of their full year results speaks louder than anything we could say about them, as does their failure to mention any plan for restoring shareholder value.'
NSF noted that its Board has set out a clear transformation plan to revitalise Provident's prospects and believes that the Transaction would deliver significantly greater benefits for both Provident shareholders and NSF shareholders than either Provident or NSF would otherwise be able to deliver on their own.
NSF said it is bringing a highly experienced management team to address Provident's problems and a clear plan with a focus on good customer outcomes and shareholder returns. The NSF Board believes the potential benefits of the Transaction have already begun to be reflected in the share prices of NSF and Provident, both of which have risen materially since NSF made its firm offer announcement on 22 February 2019.
As per the terms of the Transaction, Provident shareholders would become major participants in the potential future value creation in the Enlarged NSF Group. The Transaction has already received formal support from shareholders holding over 50 per cent. of Provident's share capital, representing a significant endorsement of NSF's management approach, expertise and its plans for the Enlarged NSF Group.
The NSF Board has discussed the Transaction with the FCA, PRA and CMA. These discussions were initiated several weeks prior to the announcement of the Transaction on 22 February 2019 and remain ongoing.
Earlier today, Provident Financial expressed its disappointment at the unsolicited and highly opportunistic approach taken by NSF, including its decision not to engage with the Board prior to the announcement. Provident Financial Board continues to strongly advise Provident Financial shareholders to take no action in respect of the Offer.
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