Amigo Holdings PLC, a UK provider of mid-cost credit that is currently in an orderly solvent wind down, has entered into an exclusivity agreement with Craven House Capital plc and others to explore potential transactions. The proposed transactions include Amigo 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 in exchange for newly issued shares in Amigo. Additionally, there is expected to be a cash subscription of at least £5 million for newly issued shares in the company. The proposed transactions are subject to formal terms being agreed, completion of due diligence, and receipt of regulatory approvals.
As a result of the exclusivity agreement, Amigo's listing on the Premium segment of the Official List and trading on the Main Market of the London Stock Exchange have been suspended. The company requested the temporary suspension due to the lack of information about the assets involved in the proposed transactions, which could impact the smooth operation of the market in the company's shares.
If the proposed transactions are completed, existing shareholders in Amigo would be significantly diluted. However, the costs of any future transaction would be paid by the proposed new investors, even if the proposed transaction does not complete. The scheme of arrangement and wind down of Amigo's historic lending business will continue as planned.
Amigo's CEO, Danny Malone, stated that the company has been open to investment opportunities to restart the business but has found the likelihood of success to be very low. The proposed transactions offer a solution that could deliver some small value to shareholders that would not be possible otherwise.
As part of the arrangement for the proposed transactions, Amigo has appointed Beaumont Cornish Limited as the sponsor to the company. Additionally, the board has asked Danny Malone to continue in his role as CEO until 31 December to assist with the negotiations of the proposed transaction.
Further details on the proposed transactions and any updates will be announced in due course.