Subprime lender Amigo says 'reverse takeover' deal terminated (updated)
16/11/2023 08:02
(Adds more detail in paragraphs 4-8)
By Huw Jones
LONDON, Nov 16 (Reuters) - A reverse takeover deal
involving Amigo Holdings AMGO.L , Craven House Capital and
various individuals signed last month has been terminated, the
British subprime lender said on Thursday as if faces voluntary
liquidation.
Amigo, which provides credit to borrowers excluded from
mainstream banks, is in an "orderly solvent wind-down" after the
cost of compensating customers for loans mis-sold in the past
pushed it to the brink of collapse.
"This is disappointing news as the transaction, in the form
of a reverse takeover of Amigo, offered a solution that could
have provided a future for shareholders, offering some small
value that wouldn't be available otherwise," Amigo CEO Danny
Malone said in a statement.
Malone, who earlier this year said he would leave Amigo, had
been asked by the company's board to remain in his post until
the end of the year to help with the negotiations.
"As we continue the orderly wind-down of our lending
business, we remain open to assessing other viable options that
could be beneficial for our shareholders, our people and wider
stakeholders," Malone said on Thursday.
If no viable alternative solution emerges, Amigo would call
a shareholder meeting in the near future to approve a delisting
and enter into voluntary liquidation, the company said.
Trading in the company's shares was suspended on Oct. 17 by
the Financial Conduct Authority due to the lack of information
about the proposed reverse takeover.
Amigo said it would ask the FCA if the shares could resume
trading.
(Reporting by Huw Jones; editing by Jason Neely and Barbara
Lewis)
((huw.jones@thomsonreuters.com; +44 207 542 3326; Reuters
Messaging: huw.jones.thomsonreuters.com@reuters.net))