June 17 (Reuters) - Shares of Amigo Holdings 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 here brings an end to his public row 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 ($77.85 million) at that price.
It is unclear how the developments will affect Amigo’s plans to put itself up for sale.
$1 = 0.7964 pounds Reporting by Pushkala Aripaka in Bengaluru; Editing by Vinay Dwivedi