Subprime lender Non-Standard Finance said on March 8 it was still looking to buy and transform Provident Financial, even after its bigger rival rejected its unsolicited 1.3 billion pound takeover offer.
The statement followed the publication of a letter from the Financial Conduct Authority to NSF dated March 6. The City watchdog warned NSF CEO John van Kuffeler that his planned takeover of rival Provident could run into regulatory challenges. The FCA cautioned NSF about changing incentives for Provident agents and highlighted harm that had been caused by a loan insurance product NSF planned to reintroduce.
NSF, known for giving credit to people who do not meet the lending criteria of mainstream lenders, on March 8 reported a pre-tax loss of 1.6 million pounds for the year ended Dec. 31, compared to a pre-tax loss of 13 million pounds, a year earlier. NSF reiterated its plan to demerge its home credit business, Loans at Home, to help ease any competition concerns regarding its possible purchase of Provident Financial.Shares in Non-Standard Finance were up 1.01 percent at 60 pence by 0931 GMT on March 8. Shares in Provident Financial were down 1.08 percent at 569.2 pence.