Major investor doubles down on Provident takeover rejection

Schroders, a major shareholder at embattled Provident Financial has doubled down on its rejection of a hostile takeover from Non-Standard Finance.

The increasingly bitter dispute over the takeover continued today after Schroders made a statement regarding NSF’s declaration that their offer was ‘unconditional’. Schroders represent 14.6% of the shares in Provident.

Kevin Murphy, fund manager, Schroders: “We have noted the announcement from NSF that its Offer for Provident Financial has become unconditional as to acceptances.

“We remain of the view that it is in the best interests of those PFG shareholders who are not also shareholders in NSF to reject the NSF Offer and continue to hold premium listed PFG stock, confident in the protection for minority shareholders that this provides.”

Provident has been increasingly hostile towards NSF which has criticised its management. They have said that the offer was “unsolicited” and “significantly flawed”. It has consistently urged shareholders to take no action in regards to the offer.

Schroders has backed Provident against NSF’s offer previously, saying it was “not in the best interests” of shareholders.

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