(Alliance News) - Guarantor loans provider Amigo Holdings said Monday it has launched a strategic review and formal sale process in a bid to "maximise value for its shareholders".
This may result in a sale of the company. Amigo said controlling shareholder Richmond Group is willing to sell its 60% stake.
Amigo said it is considering the potential sale of the company as a whole, the sale of parts of the group, the sale of the UK business, and a potential de-listing of the company's shares.
The announcement follows a board clear-out in early December. James Benamor, founder and previous chief executive of Amigo, was appointed a non-independent non-executive director with immediate effect. Benamor holds his stake in Amigo via Richmond.
Amigo floated in June 2018 with a market capitalisation of GBP1.31 billion, making Benamor among the wealthiest businessmen in the UK at that time. Since then however, the stock has plummeted, reducing the company's value to GBP288 million.
At the same time, Chair Stephan Wilcke said he wouldn't seek re-election at the firm's next annual general meeting, while Hamish Paton resigned as chief executive.
Amigo added on Monday that loan book growth and impairments for the nine months to December 31 were in line with guidance.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 1.3% at 7,490.10
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Hang Seng: Hong Kong market closed for holiday.
Nikkei 225: closed down 2.0% at 23,343.51
DJIA: closed down 170.36 points, 0.6%, at 28,989.73
S&P 500: closed down 0.9% at 3,295.47
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GBP: flat at USD1.3065 (USD1.3068)
EUR: flat at USD1.1032 (USD1.1025)
Gold: up at USD1,577.70 per ounce (USD1,571.18)
Oil (Brent): down at USD59.30 a barrel (USD60.72)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
Australia Day observed. Financial markets closed.
Chinese New Year public holiday continues. Financial markets closed in Hong Kong and Shanghai.
0930 GMT UK Finance household finance update
1000 CET Germany Ifo business climate index
1000 EST US new residential sales
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The toll from China's viral epidemic spiked on Monday to 80 dead with hundreds of new infections despite unprecedented quarantines and travel lockdowns, as foreign governments scrambled to help their trapped citizens. The virulence of a contagion causing fear nationwide has prompted authorities to impose transport curbs around China to cut off transmission routes, and extend a national holiday to delay people travelling back to work. With many thousands of foreigners trapped in the ground-zero city of Wuhan, which is under a virtual lockdown, the US and France were among several countries formulating plans to evacuate their citizens by plane. With the coronavirus also expanding globally, World Health Organization chief Tedros Adhanom Ghebreyesus headed to Beijing to meet with government officials on the crisis. The national government decided it would extend the Lunar New Year holiday and related school closures beyond the original Thursday end date to "reduce population flows," state media reported. The holiday was extended to Sunday.
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Britain's sovereignty is at risk if the country allows Chinese tech giant Huawei to help build its 5G infrastructure, the US Secretary of State has warned. Mike Pompeo described the decision facing the National Security Council as "momentous" in a last ditch plea to ministers who are expected to make the call on Tuesday. The US administration has previously warned allies not to allow Huawei to form part of their 5G networks, claiming it would be a security risk, something the company vehemently denies.
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BROKER RATING CHANGES
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BARCLAYS RAISES JUST EAT TO 'OVERWEIGHT' (EQUAL WEIGHT) - PRICE TARGET 1018 (785) PENCE
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PEEL HUNT RAISES DCC TO 'BUY' ('ADD')
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BERENBERG CUTS BUNZL TO 'SELL' ('HOLD') - TARGET 1650 (2350) PENCE
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COMPANIES - FTSE 100
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AstraZeneca said it has agreed to sell the commercial rights for its hypertension medicines portfolio to Atnahs Pharma for USD350 million. The agreement excludes rights in the US and India, which were previously divested, and in Japan, where they will be retained by AstraZeneca. Meanwhile, AbbVie said it will sell both a Crohn's disease drug and a medical nutrition business as part of its Allergan merger. AbbVie is selling Zenpep, which offers gastrointestinal medication, to Swiss nutrition firm Nestle for an undisclosed sum. Nestle said the purchase from AbbVie is aimed at expanding its medical nutrition business. Zenpep delivered net sales of USD237 million in 2018, Nestle noted. Chicago-based AbbVie, which is currently in the process of buying Dublin-based pharmaceutical firm Allergan, also is selling the rights to brazikumab to AstraZeneca. Brazikumab is in development for the treatment of Crohn's disease and ulcerative colitis, both gastrointestinal conditions. AbbVie did not disclose any financial details for this sale.
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Hazard detection company Halma said it acquired Florida-based synthetic bone graft products maker NovaBone Products for USD97 million in cash. In addition, Halma said it acquired a 70% stake in Australia-based fire protection software provider FireMate Software for AUD18.2 million.
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COMPANIES - FTSE 250
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Automotive fluid maker TI Fluid Systems said annual results for 2019 are expected to be in line with management expectations. TI Fluid said it expects to report revenue of approximately EUR3.40 billion for 2019. The company reported revenue of EUR3.47 billion in 2018. "We remain confident in the group's ability to outperform global light vehicle production on a constant currency basis, maintain high margins, and generate strong cash flow. We will provide our 2020 outlook with our full year 2019 results," the company said.
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Monday's Shareholder Meetings
Mi-Pay (re cancellation of shares)
Mineral & Financial Investments
Biotech Growth Trust (re renewal of buy back authority)
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
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