Amigo Shares Suspended From the LSE on a Proposed Transaction

The Amigo Holdings PLC (LON: AMGO) share price was suspended from trading on the London Stock Exchange’s (LSE’s) main market today after announcing that it had agreed with Craven House Capital plc to acquire a music streaming service.

Investors did not get a chance to react to the proposed transaction that would see Amigo acquire the early-stage businesses of music streaming service ONE Bas.com, film streaming service TV Zinos, global digital magazine platform Magazinos, and payments provider Payzinos in exchange for newly issued Amigo shares.  

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Craven House Capital plc has also indicated that it could participate in a cash subscription of at least £5 million in the form of newly issued Amigo shares, which could significantly dilute existing shareholders. 

At this initial stage, there is no absolute certainty regarding the occurrence of the Proposed Transactions. Their realisation hinges on several factors, including the formalisation of terms, successful completion of due diligence, and the attainment of regulatory approvals. 

Upon the Company’s request, the Financial Conduct Authority (FCA) has temporarily suspended the Company’s listing on the Premium segment of the Official List. Trading on the Main Market of the London Stock Exchange has also been suspended, effective from 7.30 a.m. today.

This suspension will remain in place until further details regarding the Assets and the expanded Company are published or an announcement indicating that the transaction will not proceed.

By buying another business, Amigo stands to continue trading as opposed to finally delisting its shares from the LSE. The move to purchase another business is brilliant and could provide some residual value for Amigo shareholders once the lending business is wound down. ‘

Should the Proposed Transactions be finalised as per the terms mentioned above, existing shareholders in Amigo would experience a significant dilution of their holdings.

Danny Malone, Amigo Loans’ CEO, commented: “Over the past few months, we have remained open to investment opportunities that would allow the business to restart, but have always said the likelihood of success to be very low. Unfortunately, that has been the case. The Proposed Transactions offer a solution that, if complete, would deliver some small value to shareholders which wouldn’t be possible otherwise.”

Amigo Loans (AMGO) share price. 

Due to the transaction, the Amigo Loans (AMGO) shares were suspended from trading on the LSE’s main market.