TIDMAMGO
RNS Number : 3616Q
Amigo Holdings PLC
17 October 2023
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH
JURISDICTION
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
17 October 2023
Amigo Holdings PLC
("Amigo" or the "Company")
Proposed transaction and suspension of listing, appointment of
Sponsor and Board update
Amigo Holdings PLC (Amigo), a provider of mid-cost credit in the
UK that is currently in an orderly solvent wind down, today
announces that it has entered into an exclusivity agreement with
Craven House Capital plc and others, ending 14 December 2023, to
enable them and the Company to further explore transactions which
could result in:
- Amigo (or a company in its group) acquiring the early stage
businesses of music streaming service ONE Bas.com; worldwide
digital magazine platform Magazinos; film streaming service TV
Zinos, and payments provider Payzinos (together the "Assets") in
return for newly issued shares in Amigo; and
- a cash subscription, expected to be at least GBP5m, for newly
issued shares in the Company (together the "Proposed
Transactions").
At this very early stage there can be no certainty that the
Proposed Transactions will take place and it remains subject to,
amongst other things, formal terms being agreed and completion of
due diligence and receipt of regulatory approvals. This
announcement is being made to allow discussions to progress.
At the request of the Company, the FCA has suspended the
Company's listing on the Premium segment of the Official List and
trading on the Main Market of the London Stock Exchange has also
been suspended as of 7.30am today, pending the publication of
further details on the Assets and the enlarged Company or an
announcement that the transaction is not proceeding. The Company
has requested the temporary suspension because of the lack of
information about the Assets in relation to the Proposed
Transaction, which could prevent the smooth operation of the market
in the shares of the Company.
On the basis that the Proposed Transactions are completed on the
above indicated terms, existing shareholders in Amigo would be
significantly diluted. The costs of any future transaction would be
paid by the proposed new investors even in the event that the
proposed transaction does not complete.
As after an extensive search for new finance for Amigo's lending
business, the Directors have concluded that securing such new
finance is effectively not possible, the Proposed Transactions
would potentially deliver some longer term value to existing
shareholders.
The Scheme of Arrangement and the wind down of Amigo's historic
lending business continue to their existing timetable.
Danny Malone, CEO of Amigo, commented: "Over the past few months
we have remained open to investment opportunities that would allow
the business to restart, but have always said the likelihood of
success to be very low. Unfortunately, that has been the case. The
Proposed Transactions offer a solution that, if complete, would
deliver some small value to shareholders which wouldn't be possible
otherwise."
As part of the arrangement to further advise on the Proposed
Transactions, the Company has appointed Beaumont Cornish Limited as
Sponsor to the Company.
The Company announced on 16 May 2023, that Danny Malone, the CEO
had resigned as a director and would leave the Company, after
serving out his 6 months' notice period, on 15 November 2023.
Further to this announcement of the Proposed Transactions, the
Board has asked Danny to continue in the role as CEO until 31
December, to help with the negotiations of the Proposed
Transaction.
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
Tony Langham
tonyl@lansons.com or 07979 692287
or
Amigoloans@lansons.com
Further details on the proposed transaction:
ONEBas.com is a music streaming service, based in Norway,
offering free streaming of music.
Magazinos is a worldwide digital magazine platform.
Magazinos.com was founded in 2014 in Stockholm, Sweden by a team of
Swedish and Norwegian tech entrepreneurs.
TV Zinos was founded in 2019 by a group of tech entrepreneurs in
Sweden as a TV / Film streaming service for global
distribution.
Payzinos is a payments business currently in development
following a previous pilot. For a regular subscription it hopes to
offer consumers international money transfer and discounted
international calling from partner telecommunication service
providers.
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.
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END
MSCFIFSRILLDLIV
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October 17, 2023 02:43 ET (06:43 GMT)
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