Amigo Holdings PLC on Thursday said that talks over its proposed takeover by investee companies of Craven House Capital PLC has been terminated.
Amigo is a Bournemouth, England-based mid-cost credit provider. Craven House is a London-based investment fund with minority shareholding in four Swedish-managed eCommerce and pharmaceutical businesses.
Amigo said the deal was terminated with immediate effect ‘at the request of various individuals’. It had previously been set to run until December 14.
Amigo Chief Executive Danny Malone said: ‘This is disappointing news as the transaction, in the form of a reverse takeover of Amigo, offered a solution that could have provided a future for shareholders, offering some small value that wouldn’t be available otherwise.
‘As we continue the orderly wind-down of our lending business, we remain open to assessing other viable options that could be beneficial for our shareholders, our people and wider stakeholders.’
In October, Amigo entered an exclusivity agreement with Craven House ‘and others’, with the parties discussing Amigo’s purchase of four businesses from Craven House that are in different fields from lending. This would be in exchange for new shares in Amigo. Craven House also would subscribe for new Amigo shares to invest at least £5 million.
Craven House said the businesses are part of investee companies Garimon Ltd and Honeydog Ltd, in both of which it holds a 29.9% stake. It said the purchase of the assets of Garimon and Honeydog would result in a reverse takeover of Amigo, with the enlarged group being listed on the London Main Market.
Amigo was in discussions to purchase four ‘early stage businesses’. They were music streaming service One Bas.com, digital magazine platform Magazinos, film streaming service TV Zinos, and payments provider Payzinos.
Amigo said it remains open to expressions of interest from other parties, but said if no alternative solution emerges, it will hold a general meeting to approve its delisting from the London Stock Exchange.
Noting the release, Craven House said it has ceased all work on the proposed transaction.
Amigo shares were unchanged at 0.39 pence each on Thursday afternoon in London, while Craven House shares tumbled 50% to $0.11 each in London.
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