Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Lender Amigo's shares drop as founder to exit stake

Published 17/06/2020, 13:46
© Reuters.
AMGO
-

(Reuters) - Shares of Amigo Holdings (L:AMGO) dropped nearly 20% on Wednesday as founder James Benamor said he would sell his stake in the subprime lender after losing a vote at a general meeting to oust the firm's board, in line with his promise earlier this month.

Benamor's announcement on Twitter https://twitter.com/JamesBenamor/status/1273208134300033031 brings an end to his public row https://medium.com/@jamesbenamor/you-will-have-seen-the-the-amigo-board-has-decided-to-pursue-an-injunction-against-richmond-group-86cf453d51d8 with the lender's management over strategy since late last year. Benamor, who has nearly 61% stake in Amigo through his firm Richmond Holdings, had stepped back from running the company after it listed in 2018.

Shareholders rejected Benamor's proposals at the general meeting to replace five directors including Amigo's chairman and chief executive officer with two of his nominees, by voting around 91% against each proposal.

The stock, which has lost about 80% of its value this year, was down 13.2% at 13 pence on the London Stock Exchange by afternoon, putting the company's market cap at roughly 62 million pounds at that price.

It is unclear how the developments will affect Amigo's plans to put itself up for sale.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.