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”.
Provides a comprehensive range of services, including bid management, writing and review, tender sourcing, solution design and staff training.
LEASEHOLD
Due to significantly exceed its pre-pandemic levels of business. The company specialises in the development of a range of revision and training aids for a wide variety of platforms.
LEASEHOLD
Achieved turnover of £1.6 million. Renowned for providing expert services for high-profile, high value incidents for clients, including significant international catastrophes.
RELOCATABLE
03
|
Mar
|
Spring Budget 2021: The M&A Outlook | BUSINESS NEWS
Chancellor Rishi Sunak has today delivered his long-awaited ...
03
|
Mar
|
Fazenda restaurant group acquired from administrators in pre-pack deal | BUSINESS SALE
The Yorkshire-based Fazenda restaurant chain has been acquir...
02
|
Mar
|
Recruitment consultancy On-Site Group acquires financial services firm | BUSINESS SALE
Specialist recruitment consultancy On-Site Group has complet...
Sign up to receive our acquisition alert emails to get your FREE guide
09
|
Jun
|
Subprime lender Amigo abandons sale after buyer walks away | BUSINESS SALE
UK subprime lender Amigo Loans has abandoned its plans for a...
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...
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