Amigo Holdings (LON: AMGO) shares are still suspended although they should be back soon. The latest news is that the rumoured and possibly possible reverse takeover isn’t going to happen. Not that it was ever very likely in the first place - why would anyone want to use the rubble of Amigo to do anything? It’s not that darn difficult to gain a listing, there are clean cash shells out there too, London does have a few spacs listed.
The announcement itself: “Amigo Holdings PLC, a provider of mid-cost credit in the UK that is currently in an orderly solvent wind down, today announces that the exclusivity agreement signed on 17 October 2023 by the Company, various individuals and Craven House Capital PLC (the "Exclusivity Agreement") has been terminated with immediate effect at the request of the various individuals. Consequently, all work on the Proposed Transaction identified in the market update dated 17 October 2023 has ceased. Danny Malone, CEO of Amigo, commented: "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."”
As this once again confirms the business, as a business, is dead and gone. What remains is the listing. Which does, in fact, have a value. But it’s really very low and may not even be positive.
Amigo Holdings share price from Google Finance
As we’ve discussed in the past about Amigo Holdings: “As we've also said about AMGO shares: “Amigo Holdings (LON: AMGO) is a long, painful, tale of a company getting shafted while it did nothing particularly wrong. Well, nothing particularly legally wrong by the standards and law of the time that it did it perhaps. But fashions change, morals change and so, eventually, does the law change. This has caught out several - like Morses Club among others - in the high cost credit industry.” The law was changed for that whole high interest rate, low credit rating, industry. The entire business line became non-viable and they were also, all, hit with high compensation charges for past activity.”
Now there were some who speculated in AMGO: “Amigo Holdings (LON: AMGO) shares are up 33% this morning. AMGO shares have risen on the back of the AGM statement. The AGM statement which confirms what we’ve known since early in the year. Amigo is bust, cannot trade its way out of trouble and the equity is worth nothing. But then there really are people who will be upon absolutely anything. Our best guess is that this is a flurry of activity at one or more of the CfD brokerages with them laying off the risk onto the market.” Really, the shares rose by 33% on the AGM statement that they really were bust.
It’s a sad story no doubt but it is one that seems to be over. The only future Amigo has is as a shell quote for someone to reverse into. And given the potential liabilities we doubt that’s going to happen, as indeed it is not happening.
