Richmond Group could sell Amigo after lending business review

Alternative specialist guarantor lender, Amigo has launched a strategic business review and opened itself to offers as its group owner signalled that it wants to sell on his majority stake in the company.

The group owner Richmond Group is keen to exit guarantor loan firm. Richmond Group, which owns a 60.6% stake in the business, has said it would be a “willing seller” of Amigo. The company has hired RBC Capital Markets to lead the review and sale process.

The guarantor lender – which allows people with poor credit history to borrow money by naming friends or family members as guarantors – has seen its value dive sharply over the past year on the back.

Amigo said its review will look at the “company’s strategy, ownership and operating model”, and consider the sale of the business as a whole or selling separate parts of the company.

This could lead to a ‘reorganisation of entities within the group, the sale of the UK business or the sale of certain books of business including a potential de-listing of the company’s shares’

The lender said that its loan book growth and impairments have been in line with expectations for the past nine months.

The strategic review will consider various aspects of the company’s strategy, ownership and operating model, including the potential sale of the Company as a whole, the sale of parts of the group, reorganisation of entities within the Company’s group, the sale of the UK business, the sale of certain books of business including a potential de-listing of the Company’s shares.