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”.
An exceptional opportunity to acquire a well-established offshore survey business, renowned for its comprehensive design, build, and operation capabilities, alongside valuable assets including vessels and equipment.
This is an exclusive chance to acquire a legal claims business with substantial work in progress valued at around £5 million.
This well-established medical specialist practice in the North West offers a robust profit margin of approximately 35% and flexible relocation options, making it an enticing investment opportunity.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.