18th Feb 2020 08:24
(Alliance News) - Sub-prime lender Amigo Holdings PLC confirmed Tuesday it has received interest from "several" parties after putting itself up for sale.
Amigo launched a strategic review and formal sale process at the end of January. A sale could include the whole company, parts of it, the UK business, or a de-listing.
Amigo appointed RBC Capital Markets to handle the sale process.
"Amigo has received indications of interest from several parties. Interested parties have entered into non-disclosure agreements with the company and discussions are ongoing," Amigo said on Tuesday.
Shares were 8.2% higher in early trade in London on Tuesday at a price of 52.80 pence each.
Amigo floated in June 2018 at a price of 275p, giving a market capitalisation of GBP1.31 billion, making founder & former Chief Executive James Benamor among the wealthiest businessmen in the UK at that time.
Since then the stock has plummeted, reducing the company's value to around GBP250 million as of Tuesday morning.
In early December, Benamor returned to the board as a non-executive director. At the same time, CEO Hamish Paton resigned and Chair Stephan Wilcke said he would not be standing for re-election at its next annual general meeting.
By George Collard; [email protected]
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