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Credit Corp Group (ASX:CCP) - CEO, Thomas Beregi - The Market Herald
CEO, Thomas Beregi
Source: Finance News Network
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  • Credit Corp (CCP) has entered a binding agreement to acquire Collection House's Australian Purchased Debt Ledger (PDL) book for $160 million
  • Credit Corp is known to buy the books of bad debts, known as purchased debt ledgers, from companies such as banks and telcos
  • Its management team can then predict what percentage of the company's outstanding debt can be recovered
  • The total consideration is subject to change, however, it is expected to be around $150 million and the acquisition is expected to be completed by December 31
  • This acquisition will improve Credit Corp's net profit after tax by roughly $10 million
  • Shares in Credit Corp have risen 13 per cent on the back of this news, currently trading at $28.09

Credit Corp (CCP) has entered a binding agreement to acquire Collection House's Australian Purchased Debt Ledger (PDL) book for $160 million.

In addition, a short-term loan of $15 million will be issued which is expected to be fully repaid within nine months.

Credit Corp is known to buy the books of bad debts, known as purchased debt ledgers, from companies such as banks and telcos.

Its management team can then predict what percentage of the company's outstanding debt can be recovered.

The total consideration is subject to change, however, it is expected to be around $150 million and the acquisition is expected to be completed by December 31.

This acquisition will improve Credit Corp's net profit after tax by roughly $10 million with further updates to be provided in the company's half-year results in February.

Credit Corp will fund the acquisition using its available cash and won't need to draw on its $375 million funding.

"Acquisition of Collection House's Australian book will be the largest single PDL purchase in Credit Corp's history," CEO Thomas Beregi said.

"Even after this acquisition, Credit Corp will retain almost $400 million in available cash and funding lines to deploy as and when suitable investment opportunities arise across all of its segments," he added.

Shares in Credit Corp have risen 13 per cent on the back of this news, trading at $28.09 at 11:30 am AEDT.

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