Fresh blow as Provvy takeover is blocked

NEIL Woodford was dealt another blow last night after the proposed takeover of Provident Financial collapsed.

The embattled fund manager owns nearly a quarter of the doorstep lender’s shares and was one of the most prominent backers of a hostile bid by NonStandard Finance (NSF).

But NSF has abandoned its pursuit of the Provvy after months of wrangling.

It is understood that the Prudential Regulation Authority (PRA) effectively killed the deal by raising concerns about the financial structure of the proposed business.

The collapse of the plan represented another blow to Woodford, 59, as he grapples with a crisis at his flagship fund. As well as owning 24.7pc of the Provvy, Woodford has a 25.7pc stake in NSF.

NSF said: ‘Following discussions with the regulatory authorities, NSF understands the regulatory condition for the offer will not be satisfied by midnight on June 5. Accordingly, NSF has decided to lapse the offer.’

Woodford was one of the high-profile backers of NSF’s takeover of the Provvy, along with money managers Invesco and Marathon. Together, they owned 49pc of Provvy and had stakes in NSF, led by 70-year-old John van Kuffeler.

But NSF failed to convince many other Provvy shareholders to back the deal. It said the proportion of the minority shareholders opposing the deal meant that – in the eyes of regulators – the business would not have enough capital at its disposal when it completed. The PRA declined to comment.