Provident suitor in pledge over HQ

Bradford ‘will remain at the heart of the business’

THE COMPANY behind a £1.3bn takeover of credit lender Provident Financial has told The Yorkshire Post that Provident’s head office in Bradford will remain at the heart of the business.

Sub-prime lender Non-Standard Finance (NSF) has tabled an all-share takeover bid for its troubled rival Provident.

NSF chief executive John van Kuffeler, who is spearheading the deal, was previously chief executive and chairman of Provident.

He told The Yorkshire Post: “We will absolutely keep the Bradford head office. Bradford is the home and heart of the whole Provident group.

“The current board are all based in London as are a lot of senior managers. 1 Godwin Street is the heart of the business and the drift to London will be reversed.”

Provident shareholders will receive 8.88 new NSF shares for each Provident share. Based on NSF’s closing share price of 58p on Thursday, the tie-up values Provident at £1.3bn, or 511p per share.

Mr van Kuffeler said: “We have recognised the strong logic and value creation potential of a combination with Provident for some time and hence approached the Provident board with a proposal in January last year.

“That approach was rebuffed and since then Provident has further lost its way.”

He said NSF will simplify the business and allow agents to spend more time with customers.

“It’s enormously sad to see what has happened to Provident. It’s been frankly, largely destroyed,” he said

Provident will have around 1,000 staff at its Bradford head office once a voluntary redundancy programme to axe 180 jobs is completed.

Asked whether all 1,000 employees will keep their jobs, Mr van Kuffeler said: “We will have to look once we complete. A good chunk are working for Vanquis.