Non-Standard Finance (NSF) has announced that it has withdrawn its £1.3billion takeover bid for Provident Financial.
After talks with regulatory authorities, NSF’s offer for Provident would lapse as the regulatory condition would not be satisfied by midnight today, the company said in a statement.
NSF said that after discussions with regulatory authorities, in learning that the Prudential Regulation Authority had decided that it would not meet minimum regulatory capital levels, it had come to the conclusion that conditions for the offer ‘will not be satisfied by midnight on 5th June 2019, the last time by which all conditions to the offer must be satisfied or waived.’
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.
“I wish to thank our shareholders for their support and all of NSF’s staff and self-employed agents for their continued dedication. 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.”
“Each of our businesses has a top three position in its respective market segment and we believe each is capable of delivering attractive long-term returns for NSF shareholders through a combination of capital and dividend growth.”