Reverse takeover planned at troubled lender
The parent company of troubled lender Amigo Loans is looking at launching a reverse takeover of the business.
Bosses at Bournemouth-based Amigo Holdings announced that is looking at a deal to resurrect the brand.
Amigo Loans is currently being wound down after it ceased operating last year.
The company had faced financial difficulties after being ordered to make compensation payments to former and current customers over historical complaints.
This morning Amigo Holdings announced that it has appointed Jim McColl to act as a board consultant.
He will assist the board in identifying potential strategic opportunities for Amigo to continue as a listed company by way of a reverse takeover.
Amigo said McColl brings nearly 30 years’ experience of creating investor value by building businesses.
Whilst the potential future options for Amigo are being investigated Peterhouse Capital has arranged the placing of 95,019,200 new ordinary at 0.25p each.
The additional capital raised by the placing will be used to provide working capital to Amigo to pay primarily the costs of this transaction and fund some of the costs associated with exploring potential reverse takeover opportunities including consultancy costs.
Jonathan Roe, chair of Amigo, said: “Jim McColl has an impressive track record of creating valuable businesses for investors and we are looking forward to working with him as we continue to seek a better solution for shareholders that presents the opportunity of restoring some value to them.
“There is no guarantee that a transaction will result, but with Jim’s track record we believe we have increased the possibility of being able to do so.”
McColl has specialised in creating investor value by building businesses for nearly three decades. Over that period, he has invested in 20 platform acquisitions, overseen 15 exits including 2 public listings and led a number of public to private transactions, mergers, demergers, spin outs and turnarounds.
