- Hong Kong-based financial management company Credit Intelligence (CI1) has completed its purchase of a 60 per cent interest in ChapterTwo Holdings
- The buy, which was revealed in early June, gives Credit Intelligence a foot in the door of the Australian financial management market
- Credit Intelligence provides debt restructure and personal insolvency management services, while ChapterTwo provides debt negotiation and mortgage broking services to people suffering major financial hardship
- The complementary businesses are particularly important given the extreme economic conditions brought about by the COVID-19 crisis
- Credit Intelligence Chairman Jimmie Wong said this is the first step in the company’s Asia-Pacific expansion strategy
- Shares in the company closed almost eight per cent higher today and worth 2.8 cents each
Hong Kong-based financial management company Credit Intelligence (CI1) has completed its purchase of a 60 per cent interest in ChapterTwo Holdings.
The deal was outlined in early June this year as part of Credit intelligence’s Asia-Pacific expansion strategy. At the time, Chairman Jimmie Wong said the decision to take up the interest in ChapterTwo came after reviewing several potential Australian acquisitions over the past two years.
As part of the deal, Credit Intelligence paid ChapterTwo $400,00 in cash and now owes a potential $320,000 in shares over the next three years based on some performance milestones.
Specifically, ChapterTwo needs to achieve a profit guarantee of $300,000 per year over the next three years to receive the CI1 shares. The price of any shares issued will be determined by the 30-day volume-weighted average price of Credit Intelligence shares calculated on the completion date.
Today, Jimmie said the company is delighted to partner with ChapterTwo and its Managing Director and Founder, Chris Mushan.
“We look forward to working together closely and supporting ChapterTwo’s successful expansion across Australia by leveraging CI1’s significant experience and resources,” Jimmie said.
Importantly, Credit Intelligence said today’s deal marks the company’s first step in building a comprehensive debt management and solutions business in Australia.
The company’s services include debt restructuring, personal insolvency management, and credit funding. ChapterTwo provides debt negotiation and mortgage broking services to people suffering major financial hardship, meaning the two businesses are highly complementary.
With ChapterTwo headquartered in Sydney, Credit Intelligence now has a foot in the door of the Australian market. Moreover, given the extreme economic uncertainty brought about by the COVID-19 crisis, Credit Intelligence’s expansion has come at an appropriate time.
CI1 shares had a happy day on the back of the completed purchase, closing 7.69 per cent higher at 2.8 cents each today. The company has a $31.95 million market cap.