Credit Intelligence Ltd has agreed to sell its 60% stake in the loss-making subsidiary OneStep Information Technology Limited for a nominal sum, expecting a modest gain. This move aligns with its strategic pivot towards profitable ventures amid ongoing ASX suspension challenges.
- Sale of 60% stake in OneStep for AUD1
- Expected gain on disposal of approximately AUD67,000
- OneStep is loss-making with negative net asset value
- Disposal aligns with focus on profitable projects
- Company reviewing investments to address ASX suspension
Strategic Disposal of OneStep
Credit Intelligence Ltd (ASX, CI1) has announced the sale of its majority stake in OneStep Information Technology Limited, a partly owned subsidiary that has been a financial drain on the group. The 60% equity interest was sold to an independent third party, Mr. Dominic Li, for a nominal amount of AUD1. Despite the low sale price, the company anticipates a gain on disposal of around AUD67,000 based on unaudited figures as of 31 May 2025.
This disposal is a clear signal of Credit Intelligence’s intent to streamline its portfolio and focus on projects that contribute positively to its bottom line. OneStep, described as loss-making with a negative net asset value, no longer fits within the company’s strategic priorities.
Financial and Strategic Implications
The board has downplayed the material impact of this transaction on the company’s overall financial position, suggesting that the disposal is more about strategic realignment than immediate financial relief. The modest gain expected from the sale is a small but welcome boost, especially given the subsidiary’s prior losses.
Credit Intelligence is concurrently reviewing other projects, aiming to expand operations in areas that promise profitability. While details remain under wraps, this signals a pivot towards ventures that could potentially drive growth and shareholder value in the near term.
Navigating ASX Suspension and Compliance
Notably, Credit Intelligence’s shares remain suspended on the ASX, and the company is actively working through compliance requirements, specifically ASX Listing Rules 3.1 and 12.2. The disposal and investment review appear to be part of a broader effort to meet these regulatory obligations and facilitate the eventual lifting of the suspension.
The board’s transparency about director interests and the disposal process underscores a commitment to good governance amid these challenges. Investors will be watching closely for updates on the company’s investment review outcomes and the timeline for re-quotation.
Looking Ahead
While the sale of OneStep marks a step towards refocusing Credit Intelligence’s business, the company’s future hinges on the success of its new projects and regulatory progress. The coming months will be critical as the company seeks to restore market confidence and demonstrate a path to sustainable profitability.
Bottom Line?
Credit Intelligence’s divestment of OneStep clears the way for a sharper focus on profitable ventures and a potential return to ASX trading.
Questions in the middle?
- What are the details and prospects of the new project under review?
- How soon can Credit Intelligence meet ASX compliance to lift its share suspension?
- Will the disposal gain be confirmed by auditors and how might it affect future financial reporting?