Credit Intelligence (ASX:CI1) has today successfully completed the acquisition of a 60% interest in Chapter Two Holdings Pty Ltd (ChapterTwo). The acquisition marks CI1’s first step in building a comprehensive debt management and solutions business in Australia, having already established a leading market position in Hong Kong.

ChapterTwo is a Sydney based debt solutions firm providing debt negotiation and mortgage broking services to individuals who are experiencing financial hardship. ChapterTwo’s alternative debt solutions are especially relevant during uncertain economic periods when there is increased demand for options to avoid bankruptcy and get back on track.

We congratulate Credit Intelligence and ChapterTwo on the successful completion of the transaction and the commencement of an exciting growth strategy moving forward.

Hatchstone Capital is pleased to be acting as financial adviser to Credit Intelligence in relation to this transaction.

 

– ASX ANNOUNCEMENT 1 JULY 2020 –

CI1 COMPLETES ACQUISITION OF CHAPTERTWO

HIGHLIGHTS
  • Credit Intelligence Limited (ASX: CI1, Company) has today completed the acquisition of a 60% interest in Chapter Two Holdings Pty Ltd (ChapterTwo)
  • ChapterTwo is a Sydney based debt solutions business providing debt negotiation and mortgage broking services to individuals who are experiencing financial hardship
  • The transaction marks CI1’s first step in building a comprehensive debt management and solutions business in Australia

Credit Intelligence Limited (ASX: CI1) (“the Company”) a leading provider of debt restructuring, personal insolvency management and credit funding is pleased to announce that it has now successfully completed the acquisition of a 60% interest in Chapter Two Holdings Pty Ltd, with a completion date of 1 July 2020.

The transaction marks CI1’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. ChapterTwo’s alternative debt solutions are especially relevant during uncertain economic periods when there is increased demand for options to avoid bankruptcy.

CI1’s Chairman Jimmie Wong said: “We are delighted to welcome ChapterTwo 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 CI1’s significant experience and resources”.

The key terms of the transaction are as outlined in CI1’s ASX announcement of 1 June 2020:

  • $400,000 in cash on 1 July 2020.
  • $320,000 in CI1 shares to be issued over three years based on ChapterTwo achieving a profit guarantee of $300,000 per annum. CI1 shares will be issued at a price determined by the 30 day VWAP calculated on the completion date.

This announcement has been approved by the Board.

– ENDS –

 

 

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Credit Intelligence Limited (ASX:CI1)

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 Hup Hoe 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.

 

Chapter Two Holdings Pty Ltd (ChapterTwo)

ChapterTwo is an Australian informal debt negotiation and mortgage broking business providing debt solutions to individuals who are experiencing financial hardship from outstanding debts. ChapterTwo provides an alternative to bankruptcy and Part IX debt arrangements by offering debt solutions that improve the overall financial position of clients without severely impacting their credit ratings.