9th Dec 2019 09:00
(Alliance News) - Amigo Holdings PLC on Monday announced a slew of board and management changes, with both its chair and chief executive departing to make way for the return of the company's founder and majority shareholder.
Shares in Amigo were up 1.7% at 61.63 pence in London on Monday morning.
Guarantor loans company Amigo said Richmond Group Ltd intends to exercise its right to appoint non-executive directors as part of the relationship agreement between the two firms.
James Benamor, founder and previous CEO of Amigo, has been appointed as a non-independent non-executive director with immediate effect at Richmond's request. Benamor holds a 61% 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.
In addition, Kelly Black, head of Measurement & Improvement at Richmond, as been appointed by Richmond as a non-independent, non-executive director at Amigo. Black also was part of the team that founded Amigo.
Stephan Wilcke, Amigo's chair, has said he will not seek re-election at the firm's next annual general meeting in 2020. This decision was made in light of the Richmond appointments as Wilcke feels it to be "more appropriate" that Amigo is led by a new chair.
Clare Salmon, chair of Amigo's remuneration committee, will also leave the board for "corresponding reasons" and "at the first suitable opportunity".
Finally, Hamish Paton has also resigned as chief executive, subject to his 12 month notice period.
Wilcke said: "It has been fascinating and gratifying to lead the board of Amigo. Clare and I will work with the board to ensure an orderly succession to take Amigo forward. I'd like to thank Hamish for working with the board in implementing necessary changes during a challenging period, and his continued commitment until his successor is found."
Amigo didn't say who will fill the specific senior roles being vacated.
It said the sweeping board changes do not constitute a takeover offer.
By Anna Farley; [email protected]
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