Shares of Amigo Holdings PLC (LON: AMGO) barely moved after J.P.Morgan made minor changes to its shareholding lowering a different category of its shares while increasing a separate category.
J.P.Morgan today released an update of its equity swap programme with Amigo Loans commencing on 2 August 2021 that would see the investment firm convert 12 million shares into cash, representing 2.5% of the total voting rights. The programme runs up to May 2026.
Investors were unmoved by today’s update since it did not indicate that J.P.Morgan was selling some of its shares in light of the UK High Court ruling that scuttled its compensation scheme, which was deemed unfair to the affected clients.
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Amigo is yet to develop an alternative compensation scheme that could gain the UK FCA’s approval allowing the guarantor lender to resume its lending activities.
The lender’s management had previously warned that it is at risk of insolvency if the court did not approve the compensation plan. Still, the court sided with the financial regulator, saying that the company could come up with a better deal for its clients.
Investors are looking forward to Amigo’s following announcements that could unveil a new compensation scheme. However, so far, the company is yet to indicate that it is preparing a new offer to settle its customers’ claims.
Institutional investors such as J.P.Morgan recently acquired significant stakes in the lender in anticipation of a quick return to lending activities after its shareholders approved the compensation scheme, which the High Court later rejected.
*This is not investment advice.
Amigo Holdings share price.
Amio Holdings shares barely moved today and kept trading in the tight range that has been in place since June.