Tycoon behind failed Provvy bid sees shares in the doorstep lender jump 16.1% while his rival firm falls 10.7%
Disappointment: Non-Standard Finance boss John van Kuffeler saw shares in his firm fall 10.7 per cent yesterday
The tycoon behind a hostile bid to seize doorstep lender Provident Financial has been left humiliated after the deal collapsed.
John van Kuffeler (pictured), boss of predator Non-Standard Finance (NSF), saw shares in his firm fall 10.7 per cent yesterday while Provvy jumped 16.1 per cent.
Van Kuffeler was a former chief executive of the Provvy who became chairman in 1996, staying for 17 years.
He launched rival NSF in 2014, and in February staged a £1.3billion raid on his former employer, claiming he could turn around its fortunes.
But after throwing in the towel this week, he said: ‘I am very disappointed that despite our best efforts, customers, employees and shareholders will not now benefit from our transformation plan to build a brighter future by combining Provident with NSF.’
NSF spent more than £10million on advisers while Provvy faces a bill of around £20million after it brought in bankers and public relations experts to fight the bid.
Analysts say that although van Kuffeler won the backing of Neil Woodford, Invesco and Marathon, who together owned 49 per cent of the Provvy, a failure to convince others such as Schroders, M&G Investments and Aberdeen Standard, proved fatal.
This prevented NSF from fully merging with the Provvy if the deal had gone ahead – and added to concerns that the combined business would not have a large enough ‘safety cushion’ of capital in a crisis.
David Buik, a veteran City commentator at Core Spreads, said the deal ‘was never going to happen. Van Kuffeler had more front than Brighton Pier.’
Responding to NSF’s retreat, the Provvy said: ‘We greatly regret the unnecessary distraction, cost and impact of the uncertainty caused by NSF pursuing its hostile offer.’