Amigo Holdings Explores Potential Transactions

By Elena Vardon

Amigo Holdings has announced that it has entered into an agreement with Craven House Capital and others to explore potential transactions. The UK guarantor-loan provider, which is currently winding down its business, revealed that this deal could lead to the acquisition of assets in exchange for newly issued Amigo shares. Additionally, there is the possibility of a £5 million ($6.1 million) cash subscription for new shares.

Included in the assets being considered are the music streaming service ONE Bas.com, the digital magazine platform Magazinos, as well as the film streaming service TV Zinos and payments provider Payzinos.

While there is no certainty that any transactions will occur under the exclusivity agreement, Amigo Holdings remains optimistic about the potential value it could bring to its shareholders.

Outgoing Chief Executive Danny Malone expressed his belief that these proposed transactions offer a unique solution that could provide some small value to shareholders that would otherwise not be possible. Malone has agreed to stay on until December 31st in order to help negotiate the deal, extending his notice period after resigning on May 16th.

As a result, Amigo Holdings has requested the suspension of its shares until more details on the assets or an announcement confirming the decision not to proceed with the transaction are made.

Craven House Capital shares rose 28% to 15.19 pence at 0712 GMT.