Deals
Provident Soars the Most in 29 Years as It Settles With FCA
- Lender reaches agreement with FCA on probe linked to Vanquis
- Company seeks to raise about $419 million in a rights issue
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Provident Financial Plc settled one of the regulatory probes that has hobbled the U.K. subprime lender since last summer, driving the shares up the most in almost 29 years.
The company will also raise about 300 million pounds ($419 million) in a rights offering to shore up its balance sheet and pay a 172 million-pound settlement related to the Financial Conduct Authority’s investigation of its Vanquis Bank unit. A separate examination of its auto-loans arm that started in December could take up to two years to conclude, according to Chief Executive Officer Malcolm Le May.