Credit Intelligence Proposes AU$0.0114 Per Share Return Post-Disposal
Credit Intelligence Ltd is set to return up to AU$1 million to shareholders following the sale of a significant asset, pending shareholder approval and completion of the disposal.
- Up to AU$1 million capital return proposed
- Return estimated at AU$0.0114 per share
- Subject to shareholder approval at June 30 EGM
- ASX granted waiver to facilitate capital return
- Capital return follows disposal of major asset
Capital Return Initiative
Credit Intelligence Ltd (ASX: CI1) has announced plans to return capital to its shareholders following the recent sale of a major asset. The company intends to distribute up to AU$1 million, which translates to an estimated AU$0.0114 per share, subject to final determination by the board based on available cash.
This move is designed to reward shareholders directly from the proceeds of the disposal, signaling management’s commitment to delivering tangible value from strategic asset realignment.
Conditions and Approvals
The capital return is contingent on two key conditions: shareholder approval at an Extraordinary General Meeting (EGM) scheduled for June 30, 2025, and the successful completion of the asset disposal. The company has secured a waiver from the ASX to allow this return of capital under Listing Rule 7.25, although any changes to the proposal may require additional approvals.
Credit Intelligence’s board has emphasized that the return is fair and reasonable, while ensuring the company retains sufficient capital to continue operations and meet creditor obligations. This balance aims to maintain financial stability while rewarding shareholders.
Strategic Implications
The disposal and subsequent capital return reflect a strategic shift for Credit Intelligence, potentially streamlining its asset base and focusing on core operations. For investors, this capital return offers an immediate benefit, but also raises questions about the company’s future investment plans and growth trajectory.
Market participants will be watching closely how the capital return is received at the EGM and how the company reinvests or reallocates resources post-disposal.
Bottom Line?
Credit Intelligence’s capital return marks a pivotal moment, but the upcoming shareholder vote will be the true test of investor confidence.
Questions in the middle?
- What are the details and strategic rationale behind the major asset sale?
- How will the company deploy remaining capital after the return?
- Could future capital returns or dividends become a regular feature?
