NSF upbeat on Provvy bid

THE company trying to buy Provident Financial has insisted it can win support from City regulators despite fears they could block the hostile takeover.

As the war between the two sides heads towards a climax, Non-Standard Finance (NSF) said it believes the Financial Conduct Authority will allow its takeover of the doorstep lender to go ahead.

NSF – run by the Provvy’s former boss, John van Kuffeler – is trying to seize control of its bigger rival. NSF is seeking support from 90pc of Provvy shareholders, which would give it the power to merge the two businesses.

It could still push ahead with a tie-up if it gets fewer but might have to keep their management teams separate – undermining one of its key arguments that van Kuffeler has the expertise to boost the Provvy’s profits if he is given control.

Van Kuffeler left the Provvy in 2013 before the high-interest lending industry began to be heavily regulated by the FCA. Fears have been raised that his takeover could lead to vulnerable customers being exploited to boost profits.

However, the FCA has warned the 70-year-old that it will not tolerate any lowering of standards.

But in a message to shareholders, NSF said it has been in discussions with the regulator and is confident of winning approval for its plans.