Fall out with founder causes potential disruptions for Amigo sale

Fall out with founder causes potential disruptions for Amigo sale

Following the announcement of a formal sale process (FSP) in January 2020, subprime lender Amigo Holdings plc (Amigo) has now confirmed that it has received a proposal from a potential buyer who is prepared to announce a firm intention to make an offer at 20.9 pence per ordinary share.

This potential offer is subject to Amigo’s controlling shareholder Richmond Group Ltd, which owns 60.66% of Amigo’s shares, providing an irrevocable undertaking to vote in favour of the transaction. Richmond Group is run by the founder of Amigo, Mr James Benamor. Amigo has stated that it ‘has been unable to engage constructively and ascertain Richmond Group's willingness or not to accept the Potential Offer’, and as such, there is no certainty regarding the potential offer. Minority shareholders have been advised against taking any action until Richmond Group has confirmed its intentions.

This comes after Benamor launched an attack on the company in March 2020 via social media, accusing the company of ‘slow motion suicide’, and stating that he had voted against the FSP, which Amigo have denied. Benamor went on to defend his earlier statements on 28 April 2020 in a further blog po

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