Amigo names Craig Ransley as chair amid operational shift

Dec ‌15 (Reuters) - Struggling British sub-prime lender Amigo Holdings said on Monday it ‍has ‌appointed Australian entrepreneur Craig Ransley as its executive chair, as ⁠the company continues to explore ‌a potential reverse takeover amid plans to become a shell company.

Separately, in its annual report, Amigo's CEO Nick Beal also said the firm ⁠was looking for potential transactions in the mining sector.

Mining-related deal activity has ​accelerated recently as miners pursue M&A for critical ‌minerals such as copper amid ⁠supply disruptions and energy transition demand, exemplified by Anglo American's $53 billion merger with Canada's Teck Resources.

Amigo's shares fell 14.3% ​to 0.45 pence in early trade.

All of Amigo's operating units have now been put into liquidation through solvent voluntary wind-ups and the firm is a cash entity with limited funds.

Ransley ​was ‍appointed by the firm ​as a consultant in October to help explore strategic options for Amigo to remain a listed company following troubles over mis-sold loans that pushed it to the brink of collapse.

Amigo, which offered high-interest loans to borrowers excluded from mainstream banks, was ⁠censured by Britain's financial regulator in 2023 for mis‑selling loans, leaving many customers struggling with ​unaffordable debt.

"A key focus of mine will be exploring the opportunity to reposition Amigo with a focus on gold and rare earth mining opportunities in Africa, principally ‌in Tanzania and Mauritania," Ransley said in a statement.

(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Mrigank Dhaniwala and Eileen Soreng)