Amigo Loans’ “reverse takeover” deal off

Terminating what had been an exclusivity agreement with the investment firm that was due to come to an end next month (14 December), it would have seen Amigo Holdings acquire early-stage businesses of music streaming service ONE Bas.com, digital magazine platform Magazinos, film streaming service TV Zinos and Payzinos – in return for newly issued shares in Amigo.  

Amigo chief executive Danny Malone said: “This is disappointing news as the transaction, in the form of a reverse takeover of Amigo, offered a solution that could have provided a future for shareholders, offering some small value that wouldn’t be available otherwise.   

“As we continue the orderly wind-down of our lending business, we remain open to assessing other viable options that could be beneficial for our shareholders, our people and wider stakeholders.”

Earlier this year, Amigo announced it would be winding down its operations after struggling to gain the capital it needed to execute its proposed scheme of arrangement. To do this, it would have needed to raise £45m to cover the equity required – however the firm hadn’t received enough interest to reach this figure.