Tue, 18 Feb 2020 | BUSINESS SALE
UK subprime lender Amigo has announced that it is in talks with potential buyers after it formally launched a strategic review and sales process last month. As of Tuesday morning, the company was valued at around £250 million.
The company says it has received several indications of interest from multiple parties, with whom it has entered into non-disclosure agreements (NDAs).
Amigo appointed RBC Capital Markets to handle its sales process following the launch of its strategic review and sales process at the end of January.
A sale could involve the whole company, parts of it, a sale of the UK business or a de-listing. Amigo’s shares went up 8 per cent following the announcement of the process.
Amigo offers loans of as much as £10,000 to borrowers with weak credit histories. Loans have an average annual percentage of 49.9 per cent. It has recently been affected by regulatory pressure, including scrutiny from the Financial Conduct Authority.
The company’s latest accounts, to the year ending March 31st 2019, show it making £95 million profit after tax and total comprehensive income attributable to equity shareholders, up from £72.2 million the year before. At the time of filing those accounts, it had total assets worth £796.3 million.
Amigo’s founder James Benamor last year returned as a non-executive director, while chief executive Hamish Paton and chairman Stephan Wilcke exited the business.
Analysts at Goodbody speculated in a note that it thinks Provident Financial will pursue discussions with Amigo, and said: "We have already been of the strong view that there would be significant interest in this business”.
Premises: Owned. Consultancy: The partners will be available to assist in the transition period to ensure a smooth handover of clients. This practice, which was established in the 1980s, is available for sale, due to the impending retirement of the p...
FREEHOLD
This practice, which was established in the 1980's, is available for sale due to the impending retirement of the practitioner. Staff: 4 full-time, 1 part-time. Sole practitioner practice. Offers invited.
LEASEHOLD
This practice, which was established over 15 years ago, is available for sale due to the impending retirement of the practitioner. Consultancy:The owner will be available to assist in the transition period to ensure a smooth handover of clients. Offe...
FREEHOLD
|
10
|
|
Apr
|
Iconic retailer Debenhams falls into administration once again | ADMINISTRATION
The long-established British retailer Debenhams has appointe...
|
09
|
|
Apr
|
Long Eaton furniture manufacturer enters administration | ADMINISTRATION
Long Eaton-based furniture group JDP Furniture has entered a...
|
08
|
|
Apr
|
Insurance broker bought out of administration | BUSINESS SALE
Flintshire-based insurance broker Staveley Head has been acq...
Sign up to receive our acquisition alert emails to get your FREE guide
|
27
|
|
Jan
|
Amigo founder puts company up for sale | BUSINESS SALE
Amigo founder James Benamor has put the subprime lender up f...
|
15
|
|
Aug
|
Credit lender Provident buys Moneybarn for £120m | MERGER
Car finance business Moneybarn is set to change ownership af...
|
10
|
|
May
|
Provident Financial sells its motor insurance arm to GMAC for £170 million | BUSINESS SALE
A subsidiary of GMAC Insurance has announced that it will ta...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources