M&G to vote against NSF’s £1.3bn takeover bid for Provident

Provident investor M&G has said it will not back Non-Standard Finance’s £1.3 billion offer to buy the credit company.

M&G, which owns 1.7% of Provident Financial Group (PFG), said in a letter that it does not believe the move will benefit shareholders, as the battle for control rumbles on.

In a letter to Provident chairman Patrick Snowball, M&G’s head of corporate finance Rupert Krefting said: “I am writing on behalf of M&G Investments to inform you that our current intention is to not accept NSF’s offer for PFG in respect of our entire shareholding.

“M&G is supportive of PFG’s current strategy and does not believe that a combination with NSF and subsequent break-up of the enlarged group will create value for PFG shareholders, and therefore is not in the best interest of our investors.”

Asset manager Schroders, which holds a stake of around 15% in the firm, has also publicly said it will not support the takeover.

NSF, run by former Provident Financial boss John van Kuffeler, tabled the bid with backing from 50% of investors but said it wanted to get 90% of shareholders to support the offer.

NSF has secured the backing of some of its major shareholders including investment guru Neil Woodford, Invesco and Marathon, who together hold a 49% stake.

Last week NSF said it had the support of investors holding 53.5% of Provident’s stock and will continue to pursue a hostile takeover.

Provident said that approximately 20.2% of shareholders have publicly stated that they do not intend to accept the offer.