1st May 2020 10:17
(Alliance News) - Amigo Holdings PLC on Friday said it is in talks with the UK Financial Conduct Authority regarding Richmond Group Ltd's proposal to replace the entire board of Amigo.
The subprime lender noted that while it is preparing for an orderly transition to the proposed new directors in the event that the resolutions set out in the requisition notice are passed, the FCA has said that new directors must have prior approval.
Earlier in April, Amigo said that Richmond Group - which holds around a 60% stake in the company - called for an extraordinary general meeting to propose a replacement to chair and chief executive officer. The requisition notice also proposed resolutions to appoint each of Sam Wells and Nick Makin as directors of Amigo.
Richmond's Chief Executive & Amigo founder James Benamor proposed the board changes as he said he could not understand how Amigo seemed to have such high redress rates, but was still paying out on target, stating on social media that he believes the company is "committing slow motion suicide".
Amigo floated in June 2018 at a price of 275 pence, giving a market capitalisation of GBP1.31 billion. Since then the stock has plunged, reducing the company's value to around GBP149.8 million as of Friday morning.
The stock was trading 7.1% higher at 32.67 pence each on Friday morning in London.
By Ife Taiwo; [email protected]
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