Woodford sells significant stake in Non-Standard Finance to Alchemy
What does this mean for the UK's doorstep borrowers?
Yesterday, it was announced that Neil Woodford sold a big chunk of his stake in the struggling doorstep lender Non-Standard Finance. It has been reported that Woodford sold around 19% of the firm to a fund run by Alchemy Partners. After the failed takeover attempt of Provident Financial, what does this new deal mean for Non-Standard Finance and its borrowers?
Executive Chairman of FairMoney.com, Dr Roger Gewolb, provides the following commentary:
"This deal is a positive one that will give borrowers more security over the future of their finances. Alchemy has a successful track record as a reviver of distressed businesses and Non-Standard Finance is very undervalued at present, as it is still reeling from its ill-judged attempt to take over Provident. I have long been a critic of the NSF/Provident deal and am pleased for consumers and borrowers that Alchemy is providing sorely needed stability in this situation.
As I said frequently during the vicious takeover battle, the typical doorstep lending transaction is for around £500. Thus the more than £30 million incurred in war fees and expenses to fight the battle which NSF appears to have unwisely started could have funded some 60,000 financially challenged borrowers who needed help.
The Provident/NSF battle must have left borrowers vulnerable and in unstable financial positions. Now, they have begun to be released from a heightened and what seemed like an indefinite period of insecurity.”
