16 Apr 2019 14:08
This announcement and the information herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Canada, New Zealand, Japan, or any other Restricted Jurisdiction in which such release, publication or distribution would be unlawful.
16 April 2019
Non-Standard Finance plc ("NSF")
Offer for Provident Financial plc ("Provident")
The NSF Board believes that today's announcement by Provident:
· shows, once again, that the Provident Board is determined to deflect from its history of self-inflicted wounds and incompetence - its defective leadership, customer failings, destruction of shareholder value, erosion of shareholder trust and strategic vacuum;
· reveals an extraordinary disregard for some of its largest shareholders, experienced investors who, having seen the Provident and NSF teams first-hand, have chosen the NSF proposition and accepted our offer;
· evidences an absurd and misplaced pride in its failings - including congratulating itself for a year in which it had to be rescued by a rights issue and which was shortly followed by a profits warning, the third overseen by Malcolm Le May in his time at Provident;
· reinforces what we have been saying - that the Provident Board combines a Chief Executive who was at the heart of Provident's catastrophic recent mismanagement with an ill-equipped wider board, the majority of whom, including the Chairman, have less than a year's experience with Provident and lack successful operational experience in non-standard finance and many of whom have been associated with past failings elsewhere; and
· again overlooks the most significant fact, that shareholders holding over 50 per cent. of Provident's shares have already accepted our Offer (as we announced on 2 April 2019) and have chosen our management team to lead the combined business.
We will issue a more detailed response in due course. In the meantime, the NSF Board remains focused on the key task: getting on with the job of fixing Provident for the benefit of customers, employees and shareholders. We therefore urge Provident shareholders to accept our Offer without delay.
John van Kuffeler, NSF's Group Chief Executive, said:
"The Provident Board appears to be living in a very different world from its customers, employees and shareholders. It continues to celebrate "the substantial progress over the past 18 months" - a period in which Provident has had to be rescued by a rights issue, has issued a profits warning, has had an "irresponsible" advertising campaign banned and has paid out over £170 million in customer redress in one business division, whilst dealing with a regulatory investigation in another and a 200 per cent. increase in the number of new complaints to the Financial Ombudsman Service in a third. Is this how the Provident Board measures success?"
"On top of this, today's announcement by Provident appears to take the frankly astonishing step of attacking its major shareholders, who have seen the choice between the NSF and Provident teams first-hand, for accepting the offer by NSF."
"Having already received acceptances accounting for over 50 per cent of Provident's shares, shareholders are backing a clear alternative to what has been a disastrous period of mismanagement and failure - the time for change is now."
Enquiries:
Non-Standard Finance plcPeter Reynolds, Director, IR and Communications T: +44 20 3869 9020
Ondra LLP (Financial Adviser to NSF)Michael Tory T: +44 20 7082 8750Stewart BennettOliver IvesGurnek Teja
Deutsche Bank, London Branch (Financial Adviser to NSF)James Arculus T: +44 20 7545 8000Chris RaffNicholas HuntNeil Collingridge, Corporate Broking
Maitland/AMO (Public Relations Adviser to NSF)Neil Bennett T: +44 20 7379 5151Andy DonaldFinlay Donaldson
Shore Capital (Corporate Broker to NSF)Mark Percy T: +44 20 7408 4090Daniel Bush
Sources and bases
(1) The figure relating to complaints to the Financial Ombudsman Service is based on the Financial Ombudsman Service's reported complaints data for Provident Personal Credit Limited, reporting a total number of 1,480 new cases received for the six-month period from 1 July to 31 December 2018 compared to the corresponding data from 1 July to 31 December 2017 which shows 489 new cases. This is a percentage increase of approximately 202.66 per cent. (a three-fold increase in the number of complaints received).
(2) The figure relating to customer redress is as stated in Provident's Annual Report and Financial Statements 2018, the 2017 exceptional costs included £172.1 million in respect of the estimated cost of restitution, other costs and provisions and a fine in respect of the settlement of the FCA's ROP investigation. Separately, Provident has also received ICO fines in this period.
Further Information
Capitalised terms used but not defined in this announcement have the meanings set out in the announcement of the Offer on 22 February 2019.
This announcement is not intended to and does not constitute or form part of any offer to exchange or subscribe for or any invitation to exchange or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the Offer or otherwise. The Offer will be made solely pursuant to the terms of the Offer Document, which contains the full terms and conditions of the Offer. Any decision in respect of, or other response to, the Offer should be made only on the basis of the information contained in the Offer Document.
The contents of this announcement are not to be construed as legal, business, financial or tax advice.
This announcement does not constitute a prospectus or prospectus equivalent document.
Overseas Jurisdictions
The information contained herein is not for release, distribution or publication, directly or indirectly, in or into the United States, Canada, New Zealand, Japan or any other Restricted Jurisdiction where applicable laws prohibit its release, distribution or publication. The release, publication or distribution of this announcement in jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom should inform themselves about, and observe any applicable requirements. Any failure to comply with the applicable requirements may constitute a violation of the applicable securities laws. This announcement has been prepared for the purpose of complying with English law and the City Code and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws of jurisdictions outside the United Kingdom.
Copies of this announcement and any formal documentation relating to the Offer are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in or into or from the United States or any other Restricted Jurisdiction and persons receiving such documents (including custodians, nominees and trustees) must not mail or otherwise forward, distribute or send it in or into or from the United States or any other Restricted Jurisdiction. Unless otherwise determined by NSF and permitted by applicable law and regulation, the Offer may not be made directly or indirectly, in or into, or by the use of mails or any means or instrumentality (including, but not limited to, facsimile, e-mail or other electronic transmission, telex or telephone) of interstate or foreign commerce of, or of any facility of a national, state or other securities exchange of the United States or any other Restricted Jurisdiction and the Offer may not be capable of acceptance by any such use, means, instrumentality or facilities.
Notice to US investors in Provident:
The Offer is being made for the securities of a UK company and is subject to UK procedural and disclosure requirements, which are different from certain of those of the United States.
For purposes of the US Securities Exchange Act of 1934, as amended (the "US Exchange Act"): the Offer will be made pursuant to Section 14(e) and Regulation 14E under the Exchange Act benefitting from the exemptions available to "Tier II" tender offers. Accordingly, the Offer will be subject to disclosure and other procedural requirements, including with respect to withdrawal rights, offer timetable, settlement procedures and timing of payments that may be different from those applicable under US domestic tender offer procedures and law, and certain rules applicable to tender offers made into the United States, including rules promulgated under Section 14(d) of the US Exchange Act, do not apply.
In accordance with, and to the extent permitted by, the Code, normal UK market practice and Rule 14e-5 under the US Exchange Act, the Financial Advisers and their respective affiliates may continue to act as exempt principal traders in Provident Shares on the London Stock Exchange and will engage in certain other purchasing activities consistent with their respective normal and usual practice and applicable law, including Rule 14e-5 under the US Exchange Act. To the extent required to be disclosed in accordance with applicable regulatory requirements, information about any such purchases will be disclosed to the Panel by no later than 12 noon on the next "business day", as such term is defined in the Code, and will be available from any Regulatory Information Service, including the Regulatory News Service on the London Stock Exchange website, www.londonstockexchange.com, and will also be available on NSF's website www.nsfgroupplc.com. To the extent that such information is required to be publicly disclosed in the United Kingdom in accordance with applicable regulatory requirements, this information will, as applicable, also be publicly disclosed in the United States.
For purposes of the US Securities Act of 1933, as amended (the "US Securities Act"): this document does not constitute a public offer of securities in the United States or an offer to the public in the United States to acquire or exchange securities. The New NSF Shares have not been, and will not be, registered under the US Securities Act, and may not be offered, sold or resold except in transactions exempt from, or not subject to, the registration requirements of the US Securities Act. The New NSF Shares have not been, and will not be, registered under the relevant securities laws of any other Restricted Jurisdiction and the relevant clearances have not been, and will not be, obtained from any securities commission of any Restricted Jurisdiction and no prospectus in relation to the New NSF Shares has been or will be lodged with, or registered by, any such securities commission. Accordingly, the New NSF Shares may not (unless an exemption under the relevant securities laws is applicable) be offered, sold, resold, delivered or transferred, directly or indirectly, in or into any Restricted Jurisdiction if to do so would constitute (or result in the Offer constituting) a violation of relevant laws or require registration thereof.
Important Notices relating to Financial Advisers
Ondra LLP, which is regulated in the United Kingdom by the FCA, is acting as financial adviser to NSF and no one else in connection with the matters set out in this announcement and will not regard any other person as its client in relation to the matters set out in this announcement and will not be responsible to anyone other than NSF for providing the protections afforded to clients of Ondra LLP nor for providing advice in relation to any matter referred to herein.
Deutsche Bank AG is authorised under German Banking Law (competent authority: European Central Bank) and, in the United Kingdom, by the PRA. It is subject to supervision by the European Central Bank and by BaFin, Germany's Federal Financial Supervisory Authority, and is subject to limited regulation in the United Kingdom by the PRA and FCA. Neither Deutsche Bank nor any of its subsidiaries, branches or affiliates will be responsible to any person other than NSF for providing any of the protections afforded to clients of Deutsche Bank nor for providing advice in relation to any matters referred to in this announcement. Neither Deutsche Bank nor any of its subsidiaries, branches or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Deutsche Bank in connection with this announcement, any statement contained herein, or otherwise. Deutsche Bank is acting as financial adviser to NSF and no other person in connection with the contents of this announcement.
Shore Capital, which is authorised and regulated in the United Kingdom by the FCA, acts as broker to NSF and will not regard any other person as its client and will not be responsible to anyone other than NSF for providing the protections afforded to clients of Shore Capital nor for providing advice in relation to any matter referred to herein. Neither Shore Capital nor any of its subsidiaries, associates, branches or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Shore Capital in connection with this document, any statement contained herein, or otherwise.
Forward-Looking Statements
This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and business of Provident and certain plans and objectives of NSF with respect thereto. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'hope', 'aims', 'continue', 'will', 'may', 'should', 'would', 'could', or, in each case, their negative or other words of similar meaning. They appear in a number of places throughout the announcement and include statements regarding the intentions, beliefs or current expectations of the NSF and the NSF Board. These statements are based on assumptions and assessments made by NSF in light of its experience and its perception of historical trends, current conditions, future developments and other factors it believes appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this document could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this document. NSF does not assume any obligation to update or correct the information contained in this document (whether as a result of new information, future events or otherwise), except as required by applicable law.
There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. No statement in this announcement is intended as a profit forecast or profit estimate and no statement in this presentation should be interpreted as such.
The forward-looking statements contained in this announcement speak only as at the date of this announcement. Except as required by the FCA, the London Stock Exchange or applicable law (including as may be required by FCA's Listing Rules, the Disclosure and Transparency Rules and the Prospectus Rules), NSF and its directors expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement, whether as a result of any change in events, conditions or circumstances or otherwise on which any such statement is based.
Ondra LLP and Deutsche Bank (and their respective affiliates) expressly disclaim any obligation or undertaking to update, review or revise any forward-looking statement contained in this announcement whether as a result of new information, future developments or otherwise.
Publication on website
A copy of this announcement will be made available, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, on NSF's website at www.nsfgroupplc.com no later than 12 noon (London time) on the Business Day following this announcement. For the avoidance of doubt, the content of this website is not incorporated by reference into, and does not form part of, this announcement.