Provident Financial Share Discussion Threads

[dexdringle] 25/2/2019 10:19

"Trading in the business for 2018 was as outlined in the trading update on 15 January 2019. Current trading continues in line with our expectations. However, in light of the current circumstances the Board believes it is appropriate to delay the announcement of its full-year 2018 results to 13 March 2019...….

…..because they are terrible and to announce them now would add credence to NSF's suggestion that the PFG management are inept" ?

I can't think of any other reason for not releasing the results as per schedule.

[gregsc] 25/2/2019 10:01

So, the board hopes to find another offer for PFG by delaying the announcement of its full-year 2018 results to 13 March 2019. Can't think who that would be, apart from a US company.

[patientcapital] 25/2/2019 09:47

"Trading in the business for 2018 was as outlined in the trading update on 15 January 2019. Current trading continues in line with our expectations. However, in light of the current circumstances the Board believes it is appropriate to delay the announcement of its full-year 2018 results to 13 March 2019."

[dekle] 25/2/2019 09:45

Preliminary results due Wednesday

[bookbroker] 25/2/2019 08:25

Dex - INTU, HMSO - to name two others in a diferrent sector.

[jonwig] 25/2/2019 08:21

The FT morning email says:

Shareholders think a new owner may help turn around the struggling Provident Financial - its shares rose on news of NSF’s hostile bid on Friday. But the Provvy board clearly want that new owner to be someone else. It is easy to see why: NSF is offering no premium, and Mr Woodford’s big holdings in both companies create a conflict of interest that does not serve minority shareholders. There is also no evidence that NSF can do better at doorstep lending: its own shares trade way below their 2015 listing price. For Provvy shareholders, a better option would be a cash offer from a rival bidder - and its board pretty much admits that this morning.

This forgets that Kuffeler knows about doorstep lending from his early days at PFG. He was on BBC R4 at 6:15 this morning and talks a good line.

[dexdringle] 25/2/2019 08:21

Again and again, directors of target companies say "the offer doesn't reflect the true underlying value of the business". But they never say what they think that value (per share) is, nor do they explain why they think the current price is well below that, nor what they are doing to get the share price up to the figure they 'think' is a true reflection.

Same thing happened with Inmarsat last year. Bid at £5.60 rejected. "Doesn't reflect true value" etc etc. Inmarsat shares are now £3.90.

Some years ago Philip Green was bidding £4 a share for Marks & Spencer. Was rejected. Didn't reflect the true value of the business. Marks & Spencer shares are now £2.90.

NSF board are being opportunistic here. But as PFG shareholders will end up with 90% of the (slightly) enlarged group this is really more of a management change than a takeover. The PFG board are only resisting because they will be out on their ears otherwise.

[bookbroker] 25/2/2019 07:52

They should accept the offer, it’s clear Wooodford and Invesco are the instigator’s, what you have is a wind-down of their holdings, unlikely anyone else will step up to the plate!

[richardbrook1] 25/2/2019 07:32

In response to the offer for Provident Financial plc (“Provident Financial”, the “Company”; or the “Group”) announced by Non-Standard Finance plc (“NSF”) on Friday 22 February (the “Offer”), the Board of Provident Financial (the “Board”) expresses its disappointment at the unsolicited and highly opportunistic approach taken by NSF, including its decision not to engage with the Board prior to the announcement.

[gowlane] 23/2/2019 12:29

A bit of a coup by Van Kuffeler.

But the asset will be in better hands, the present lot doesn´t seem to know how to manage it.

[tradejunkie2] 22/2/2019 19:40

Share holders really bending over and taking it up the botty.

[minerve] 22/2/2019 16:50

I decided to take my gain today. Pretty much c15%.

Needed some extra cash for the fun next week. Almost been running 100% invested since the December lows.

[patientcapital] 22/2/2019 16:46

I don't either. Closed at a slight discount to implied NSF scrip value.

[gregsc] 22/2/2019 16:11

dexdringle re: your post3009

I think you missed my point. JvK approached PFG in January last year and was rebuffed.
The best way to get the board to agree is to come to an arrangement with the biggest shareholders first then go back to the board. The board are the ones getting stitched up.
We have all been losing money over the past year or so. All shareholders can gain from this, not only the majority stockholders.
It looks at first sight (15% gain today so far) as if no-one will lose out.

[k19ten] 22/2/2019 16:03

I've held this share for a while. Traded on the drop and rise......Now a 200 head chop starting this week makes sense

[wad collector] 22/2/2019 15:59

I somehow suspect that there will not be any rival bids and presumably the PFG management cannot negotiate a higher offer if there has already been those acceptances. But I suspect that they won't be that bothered as there will be some juicy sweeteners for them to take gardening leave and some contortion around their options.
I wonder if the MMC are interested.

[dekle] 22/2/2019 14:52

IC recommended them at 677p, I purchased at 656p and then sold 3/4 at 542p following the last disappointing results. I have already lost out and perhaps others have too. Now the rise as helped to reduce the loss on my remaining holding. The merger seems like a positive move. Just a question of whose heads roll in PFG or NSF in my opinion.

[dexdringle] 22/2/2019 13:49

GregSC "Obvious that this is a stitch up between NSF and the major shareholders who represent a majority of the voting stock"

What do the majority PFG shareholders have to gain over and above the rest of us ?

What exactly is the nature of the stitch up and who is losing out ?

[patientcapital] 22/2/2019 13:26

But what is odd is that it took so long coming. JvK was the obvious man to seek managerial help from. He built the business after all. Presumably he was approached by his shareholders, in the ordinary way, so it is as well that everyone's interests coincide.Whether a higher bid will be flushed out remains to be seen.

[patientcapital] 22/2/2019 13:22

Very much so. Nice to be in agreement :)

[minerve] 22/2/2019 13:09

They should have seen their vulnerability.

[dexdringle] 22/2/2019 13:01

This is most odd.....

Firstly NSF announce a 'firm' offer but no immediate response RNS from PFG who take three and a half hours to announce that they haven't yet got a response. So, presumably, they had no idea this was coming.

NSF state that they have the agreement in principle from more than 50% of PFG shareholders meaning that, before the announcement, they must have discussed the proposed plan with some shareholders and not others.

The PFG share price is now nearly 10% above the offer price based on the current 62p NSF share price x 8.88.