Credit Intelligence Moves to Sell 37% Asset Stake for $1.5M

A Major Asset on the Block

Credit Intelligence Ltd (ASX: CI1) has taken a significant step in reshaping its portfolio by entering into a conditional agreement to sell its entire equity interest in Credit Intelligence Holding Limited (CIH), its wholly owned subsidiary. The deal, valued at AUD 1.5 million, represents approximately 37% of the company's consolidated assets as reported in the half-year ending December 2024.

The disposal is not yet finalised, hinging on several key conditions including shareholder approval at an Extraordinary General Meeting scheduled for 30 June 2025, satisfactory due diligence by the purchaser, and compliance with regulatory requirements. The purchaser, Mr. Herman Chung, is an independent third party with no disclosed intentions to relist the asset on any securities exchange.

Strategic Refocus on Profitability

The Board has framed this sale as part of a broader strategy to concentrate on profitable ventures, noting that CIH has been a loss-making entity. This move signals a clear pivot away from underperforming assets, potentially freeing up capital and management focus for more lucrative opportunities. While the company has indicated it is reviewing other projects to expand its operations, it has yet to specify which business activities will take precedence post-disposal.

This strategic recalibration comes amid an ongoing review of all investments and a plan to address the suspension of its shares on the ASX. The Board has committed to meeting the necessary listing rules to facilitate the removal of this suspension, suggesting a period of significant corporate restructuring and compliance efforts ahead.

Governance and Transparency

Importantly, the company has confirmed that none of its directors have any direct interest in the disposal beyond their existing stakes in Credit Intelligence Ltd, underscoring a clean governance approach to the transaction. Shareholders will receive further details in the forthcoming Notice of Meeting, which will outline the rationale and terms of the disposal in greater depth.

As the company navigates these changes, investors will be watching closely for the outcomes of the shareholder vote and the subsequent strategic direction. The sale of such a substantial asset marks a pivotal moment for Credit Intelligence, potentially setting the stage for a leaner, more focused operation.