SYDNEY: Credit Intelligence Limited announced that it has now successfully completed the acquisition of a 60% interest in ChapterTwo Holdings Pty Ltd, with a completion date of 1 July 2020.
The transaction marks Credit Intelligence’s first step in building a comprehensive debt management and solutions business in Australia. Headquartered in Sydney, ChapterTwo provides informal debt negotiation and mortgage broking services to individuals in Australia who are experiencing financial hardship, which offer a viable alternative to bankruptcy or Part IX debt agreements that have harsh consequences for individuals.
Chapter Two’s alternative debt solutions are especially relevant during uncertain economic periods when there is increased demand for options to avoid bankruptcy.
Credit Intelligence’s Chairman Jimmie Wong said: “We are delighted to welcome Chapter Two and our partner in this company, Managing Director and Founder of ChapterTwo Chris Mushan, to the Credit Intelligence Group. We look forward to working together closely and supporting ChapterTwo’s successful expansion across Australia by leveraging Credit Intelligence’s significant experience and resources”.
The key terms of the transaction are:
- $400,000 in cash on 1 July 2020.
- $320,000 in Credit Intelligence shares to be issued over three years based on ChapterTwo achieving a profit guarantee of $300,000 per annum. Credit Intelligence shares will be issued at a price determined by the 30 day VWAP calculated on the completion date.
Credit Intelligence Limited (ASX:CI1) is one of the leading diversified debt-restructuring and personal insolvency management services operating in Hong Kong in the credit funding sector. Credit Intelligence’s main business includes the provision of bankruptcy admission services and Individual Voluntary Arrangement (IVA) proposal consultancy and implementation services.
CI1 acquired 60% of two profitable Singapore based finance companies, ICS Funding Pte Limited (ICS) and HupHoe Credit Pte Limited (HHC) on 28 June 2019 and 30 September 2019 respectively. Both acquisitions are profit accretive to the group results for the financial year ended 30 June 2020.
Credit Intelligence acts for all the leading banks and financial institutions in Hong Kong with regular referrals from those banks and financial institutions to assist their defaulting personal clients. Two of the directors of the Company are registered Trustees in Bankruptcy in Hong Kong.