Category Market News

Amigo takeover talks terminated as Craven House withdraws

Amigo takeover talks with Craven House terminated; lender says deal offered future for shareholders, remains open to other options.
Mark Rogers

Mark Rogers

Amigo Holdings saw its proposed takeover by Craven House Capital-backed companies terminated on Thursday, sending shares in both firms lower.

The UK subprime lender said in a statement that the previously announced talks were ended “at the request of various individuals”. Amigo chief executive Danny Malone expressed disappointment, saying the deal “offered a solution that could have provided a future for shareholders”.

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Under the proposed agreement, Amigo would have purchased four early-stage firms from Craven House investees Garimon and Honeydog in exchange for new Amigo shares. Craven House also planned to invest at least £5 million into the troubled lender.

The four businesses – music streamer One Bas, magazine platform Magazinos, film service TV Zinos and payments firm Payzinos – would have enabled a reverse takeover of Amigo, with the combined entity seeking a London Main Market listing.

With the talks now ceased, Amigo said it remains open to other options but may hold a shareholder meeting to approve delisting if no deal emerges.

Amigo has been winding down its lending business after becoming embroiled in mis-selling complaints. Its shares closed flat at 0.39p on Thursday while Craven House shares plunged 50% to $0.11.

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