Ex-boss in £1.3bn bid for Provident Financial

PROVIDENT FINANCIAL, backed by Neil Woodford, one of Britain’s best-known investors, has received a £1.3bn takeover bid from its former boss.

John van Kuffeler, who was chief executive and then chairman of Provident for more than two decades, has moved for the troubled doorstep lender through his firm Non-standard Finance.

The unsolicited bid comes as the 138-year-old firm struggles following a disastrous restructure of its doorto-door sales force two years ago. In January it lost almost a fifth of its value after issuing a profit warning.

Mr Woodford, who owns about 25pc of the group, has backed the deal alongside Invesco and Marathon, meaning it has the support of more than half the lender’s investor base. The takeover would mean Provident shareholders own 87.8pc of the combined business. Mr Van Kuffeler, NSF founder, would remain CEO.

“Since Mr Van Kuffeler stepped down from the Provident board, Provident has been under significant pressure,” NSF said.

Provident has issued three profit warnings in 18 months, sinking from a £343m profit in 2016 to a loss of £123m the following year. Since Provident’s first profit warning in June 2017, its share price has crashed more than 70pc.

The business was set up in 1880 to provide credit for poor families in Yorkshire. Agents knock on customers’ doors and offer them loans or ask for repayments.

The board said it was considering its response and advised shareholders to “take no action” in respect of the bid. It is being advised by Barclays and JP Morgan.