Finexia Financial Group announces proposed disposal of businesses

SYDNEY: Finexia Financial Group Limited (ASX: FNX) announced on Thursday that it is considering the disposal of a significant portion of its business, including the sale of Creative Capital Group Pty Ltd (CCG) and the management rights of the Finexia Childcare Finance Trust (FCFT).

The proposed transaction comes after the resignation of former CEO Patrick Bell, who is now part of a group of investors leading the acquisition.

In a statement released to the Australian Securities Exchange (ASX), Finexia disclosed that the non-binding agreement involves the sale of CCG’s entire issued share capital, the management rights and operational control of FCFT, and assets related to CCG’s lending operations, including security interests, loan documentation, and customer relationships.

The company has also received interest from other parties, who have signed non-disclosure agreements and are conducting due diligence. Finexia’s management is currently evaluating all proposals in a structured process.

The announcement follows a trading halt requested by Finexia on Feb. 28, 2025, due to concerns over the potential impact of the transaction on the company’s HY25 financial accounts. The company has since confirmed that the HY25 accounts are in the final stages of completion and are expected to be lodged with the ASX on Thursday.

However, Finexia cautioned that its shares are unlikely to be reinstated to quotation immediately after the accounts are lodged. The ASX will need to determine whether Chapter 11 of its listing rules applies to the proposed disposal of a substantial part of Finexia’s business.

The company’s executive chairman, Neil Sheather, and acting CEO, Marc Duncan, are leading the discussions with the ASX and overseeing the finalization of the HY25 accounts.

Finexia Financial Group, headquartered in Sydney, provides financial services and investment management. The proposed disposal marks a significant shift in the company’s business strategy as it evaluates its future operations.