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”.
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.