Nonstandard Finance stocks drop as largest shareholder withdraws capital increase

Finance


Release Date: May 18, 2023 4:03 AM ET

By Elena Valdon

Nonstandard Finance shares fell 34% on Thursday after the company said its largest shareholder was no longer willing to participate in a capital increase and an alternative deal was likely.

Shares were down 0.15p to 0.30p at 0750 GMT.

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By Elena Valdon

Nonstandard Finance shares fell 34% on Thursday after the company said its largest shareholder was no longer willing to participate in a capital increase and an alternative deal was likely.

Shares were down 0.15p to 0.30p at 0750 GMT.

The UK consumer finance provider said it had informed Alchemy that it did not intend to participate in the financing under the proposed recapitalization in the current environment.

Alchemy has announced that Toby Westcott, who was nominated as a non-executive director, has resigned from the board with effect.

NonStandard said it would continue its arrangement scheme, citing an alternative transaction (transferring its business to a secured lender in exchange for the forgiveness of some of its secured debt and the provision of new lines of credit). – More likely than the proposed capital increase.

The recapitalization effectively dilutes shareholder returns to negligible value, unless they participate in the capital increase, the company said.

He added that the most likely outcome would be an orderly contraction after the deal is done.

Email Elena Vardon at elena.vardon@wsj.com.



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