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Amigo Holdings PLC (AMGO)

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Friday 22 March, 2019

Amigo Holdings PLC

Response to press speculation

RNS Number : 7971T
Amigo Holdings PLC
22 March 2019
 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.8 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE")

FOR IMMEDIATE RELEASE

22 March 2019

Amigo Holdings PLC ("Amigo")

No intention to make an offer for Provident Financial plc ("Provident")
and response to Financial Conduct Authority ("FCA") statements

Provident

The Board of Amigo is committed to a mid-cost credit strategy and as such confirms that it is not intending to make an offer for Provident.

This is a statement to which Rule 2.8 of the Code applies.

Under Note 2 on Rule 2.8 of the Code, Amigo (on behalf of itself and anyone acting in concert with it) reserves the right to set the restrictions in Rule 2.8 aside in the following circumstances.

(a)        in the event that the offer by Non-Standard Finance plc is withdrawn or lapses, with the agreement of the board of Provident;

(b)        if a third party announces a firm intention to make an offer for Provident;

(c)        if Provident announces a "whitewash" proposal (see Note 1 of the Notes on Dispensations from Rule 9) or a reverse takeover (as defined in the Code); and

(d)        if there has been a material change of circumstances (as determined by the Panel on Takeovers and Mergers).

FCA statements

In light of recent statements made by the FCA, Amigo's regulator, in its Portfolio Strategy Letter to firms dated 6 March 2019 and by Jonathan Davidson of the FCA at the Credit Summit held in London yesterday, and in light of corresponding press coverage, the Board of Amigo wishes to clarify the following:

(1)        Guarantor payments: In relation to Amigo, the number of payments made by guarantors as a proportion of total payments rose very slightly between YE March 2017 and YE March 2018 in line with economic conditions, and has remained broadly constant during the current financial year at just under 10%. Similarly, the number of loans where the guarantor makes one payment or more in a given year has also remained broadly constant, with a small rise in YE March 2018 from YE March 2017 and, based on current data, a broadly consistent result is expected for the current financial year as for YE March 2018.

(2)        Affordability: Amigo's affordability criteria remains fundamentally unchanged since a thorough review at the time of obtaining FCA authorisation in 2016, with recent enhanced checks for higher risk customers pursuant to the new FCA guidelines.

(3)        Business model: Amigo's simple and transparent business model is unchanged since FCA authorisation in 2016.

 

This announcement contains inside information.

Enquiries:

Hawthorn Advisors                                                      [email protected]

Lorna Cobbett                                                             Tel: 07771 344 781

 

RBC Capital Markets (Corporate Broker)                   Tel: 020 7653 4000

Oliver Hearsey / Marcus Jackson

 

Additional Information

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to this announcement or otherwise.

The financial information in respect of Amigo included in this announcement is based on the audited consolidated financial statements of Amigo for the years ended 31 March 2017 and 31 March 2018 and the unaudited management accounts for the current financial year ending 31 March 2019.

This announcement constitutes notice by Amigo Luxembourg S.A. (the "Issuer") to the holders of the Issuer's Senior Secured Notes due 2024 (for the notes issued pursuant to Rule 144A of the United States Securities Act of 1933, ISIN: XS1533928468 and Common Code: 153392846; for the notes issued pursuant to Regulation S of the United States Securities Act of 1933, ISIN: XS1533928625 and Common Code: 153392862) (the "Notes") issued pursuant to pursuant to Section 4.03(a)(3) of an indenture dated January 20, 2017 among, inter alia, the Issuer, the guarantors named therein and U.S. Bank Trustees Limited, as trustee and security agent. Amigo Holdings PLC is the indirect parent company of the Issuer. This announcement shall constitute a "Report" to holders of the Notes.

RBC Europe Limited, which is authorised in the United Kingdom by the Prudential Regulatory Authority and regulated by the FCA and the Prudential Regulatory Authority, is acting for Amigo and for no one else in connection with this announcement and will not be responsible to anyone other than Amigo for providing the protections afforded to its clients or for affording advice in relation to this announcement, or any other matters referred to herein.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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