Last checked at 17 Nov 2023 08:05
17 November 2023
Amigo Holdings PLC
("Amigo" or the "Company")
Termination of Potential Transaction and Request for Lifting of Temporary Suspension
Amigo Holdings PLC, a provider of mid-cost credit in the UK that is currently in an orderly solvent wind down, today announces that the exclusivity agreement signed on 17 October 2023 by the Company, various individuals and Craven House Capital PLC (the "Exclusivity Agreement") has been terminated with immediate effect at the request of the various individuals. Consequently, all work on the Proposed Transaction identified in the market update dated 17 October 2023 has ceased.
Danny Malone, CEO of Amigo, commented: "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. 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."
At the request of the Company, the FCA suspended the Company's listing on the Premium segment of the Official List and trading on the Main Market of the London Stock Exchange from 7.30am on 17 October 2023. The temporary suspension was requested because of the lack of information about the Proposed Transaction, which could have prevented the smooth operation of the market in the shares of the Company. Further to the termination of the Proposed Transaction, the Company will request the FCA to lift the temporary suspension of its listing for its ordinary shares of 0.25p each on the Premium Segment of the Official List, at the earliest opportunity.
Since the Group started the orderly wind down of the lending business, the Company has been and continues to be open to any expression of interest from third parties in all or any assets of the business. However, as noted previously, should a viable alternative solution not emerge, there will be no value remaining in the Company for shareholders and the Company will need, in the near future to convene a separate General Meeting, in which shareholder approval will be sought to delist the Company from the London Stock Exchange and to enter the Company into a Members Voluntary Liquidation.
The Scheme of Arrangement and the wind down of Amigo's historic lending business continue to their existing timetable.
Further announcements will be made in due course.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014. The person responsible for this announcement is Roger Bennett, Company Secretary.
Notes to editors:
Media enquiries
Ed Hooper 07783 387713
or
Amigoloans@lansons.com
About Amigo Loans
Amigo is a public limited company registered in England and Wales with registered number 10024479. The Amigo Shares are listed on the Official List of the London Stock Exchange. On 23 March 2023 Amigo announced that it has ceased offering new loans, with immediate effect, and would start the orderly solvent wind-down of the business. Amigo provided guarantor loans in the UK from 2005 to 2020 and unsecured loans under the RewardRate brand from October 2022, offering access to mid?cost credit to those who were unable to borrow from traditional lenders due to their credit histories. Amigo's back book of loans is in the process of being run off with all net proceeds due to creditors under a Court approved Scheme of Arrangement. Amigo Loans Ltd and Amigo Management Services Ltd are authorised and regulated in the UK by the Financial Conduct Authority.