By By Elena Vardon
Shares of Amigo Holdings dropped significantly as trading resumed on Friday, following the collapse of the company’s potential deal with Craven House Capital and other parties.
At 08:25 GMT, shares were down 0.05 pence, representing a decrease of 12.5%, settling at 0.35 pence. Initially, the stock had shown positive movement during market open. This decline in value adds to the significant loss of 92% the stock has faced since the beginning of the year.
The U.K. guarantor-loan provider announced on Thursday that the deal, which had the potential for a reverse takeover through the acquisition of assets and a cash subscription for new shares, was terminated upon the request of multiple individuals.
Additionally, Amigo Holdings expressed its willingness to consider third-party interest in its assets. However, if a viable alternative solution fails to emerge, the group may resort to delisting and entering into liquidation, resulting in shareholders receiving no compensation.
Shares had been temporarily suspended since October 17, when the exclusivity agreement was initially announced. Now, with the transaction no longer moving forward, the London-listed group, which is gradually winding down its lending operations, has requested to lift the temporary suspension.
Comments