Bosses struggle to fend off takeover
A BITTER battle for the future of doorstep lender Provident Financial broke out yesterday.
Provident, which dates back to 1880, vowed to fight an “unsolicited and highly opportunistic” approach by a rival.
But the odds are stacked against it as Non-Standard Finance’s £1.3billion offer is already backed by three of Provident’s biggest shareholders who together control just over 50 per cent.
Bradford-based Provident, or The Provvy to many customers, is reeling from a series of botched moves.
They include a shambolic shake-up of its door-to-door arm, and the City watchdog’s probe into its Moneybarn car finance and Vanquis credit card divisions.
NSF, formed in 2014 and led by the former Provident boss Turbulent times for the Provident John van Kuffeler, has 130 Everyday Loans and Loans at Home branches.
Its offer would see Loans at Home listed as a separate business, Moneybarn sold and Provident’s online lender Satsuma flogged or closed.
However, there is no word as to what this would mean for customers or staff. NSF has the blessing of Provident shareholders Woodford Investment Management, Invesco and Marathon Asset Management – enough to cause havoc for The Provvy board – but the proposal needs 90 per cent backing.
The Provvy’s only hope is to win investors over or the arrival of a “white knight” saviour. Provident chief executive Malcolm Le May said: “The management team has made substantial strides in restoring stability, improving the company’s regulatory position and enhancing its internal culture with a focus on customer outcomes.” PRIMARK is gearing up to launch a clothes recycling scheme. John Bason, finance boss at the chain’s owner Associated British Foods (ABF), said a trial would start “later this year”. The move follows recommendations from MPs for retailers to pay a penny per item of clothing to fund better recycling amid concerns about throwaway fashion. Primark, which sells a range by personal trainer and author Alice Liveing, left, is expected to see total sales for the six months to March up four per cent thanks to new stores, but down two per cent on those trading at least a year, mainly due to outlets in Germany. Primark’s sales in the UK will be flat because of a tough November.